- Grass crypto blasted past $3 on high trading volume.
- Further gains might take a day or two to unfold, price dip anticipated.
As a seasoned crypto investor with over a decade of market experience under my belt, I’ve seen my fair share of bull runs and bear markets. The recent surge of Grass [GRASS] has caught my attention, and I must admit, I’m intrigued. With the token blasting past $3 on high trading volume, it seems we might be in for a ride.
The GRASS cryptocurrency has reached a fresh record high and is currently in its price exploration stage. In just the last day, trading volume has risen by 21.6%, amounting to a substantial $601 million.
The technical analysis indicates that the value of this token may drop beneath the $3 threshold, presenting a potential buying opportunity. Given the overall bearish trend, a dip below $2.5 might signal a more significant correction to come.
Bearish divergence hints at overextended market
Starting from November 5th, we’ve seen a consistent increase in trading activity, with the On-Balance Volume (OBV) ascending progressively. This suggests that the upward trend in GRASS is primarily due to strong buying interest fueled by genuine demand.
For the last three days, the Relative Strength Index (RSI) on the four-hour chart has remained above the 50 neutral level, indicating a robust upward momentum. However, over the past two days, it has displayed a bearish divergence.
In simpler terms, when the Relative Strength Index (RSI) shows decreasing peaks (lower highs), but the price continues to rise and show increasing peaks (higher highs), this is called divergence. However, it doesn’t necessarily mean the trend will reverse immediately. Instead, such divergence often suggests that a temporary correction or pullback might occur in the market.
In case there’s a price drop, it’s likely that the price range between $2.7 and $2.85, which was previously a resistance level, will act as a support in the near future.
Potential 14% pullback for Grass crypto
Evidence that the $2.7 region might be a demand zone emerged from the recent liquidation map. In the last 24 hours, a significant accumulation of liquidity was observed slightly above the previous high at $3.03.
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As a result, the price of GRASS moved towards this area and has reached it. There’s a chance it could continue to increase in value.
Instead, there’s a possibility that the momentum discrepancy on the H4 chart might lead to a retracement towards the closest liquidity zone at $2.7.
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2024-11-08 22:15