- GOAT’s Long/Short ratio stands at 0.928 at the time of writing, indicating strong bearish sentiment among traders.
- A combination of on-chain metrics and technical analysis indicates that bears are currently dominating the asset.
As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and whale-driven price actions. The recent sell-off by a crypto whale holding GOAT seems to have contributed significantly to its decline.
Interest in meme coins on the Solana network is once again rising, sparked by the arrival of Goatseus Maximus [GOAT]. Crypto fans have taken notice of this token because of its strong showing in recent trading days.
Potential reason for GOAT price decline
With the memecoin surging higher, a significant cryptocurrency investor, holding profits worth more than $9 million, decided to cash out their “Greatest of All Time” (GOAT) coins.
On October 24th, when the price of GOAT hit a record peak, a large investor (often referred to as a “whale”) chose to sell off their assets, according to reports from the blockchain transaction monitor, Lookonchain.
Based on the available information, a large investor (referred to as a ‘whale’) sold approximately 9.23 million GOAT tokens, which had a total value of around $7.13 million. Initially, this whale invested roughly $7.5 million to purchase about 22.48 million GOAT meme coins at an average price of around $0.334 per token.
It’s possible that this drop in value is what’s causing the current decrease in GOAT’s price. As we speak, GOAT is being traded around $0.632, and it has fallen by more than 22% over the last day.
In the very same timeframe, its trade activity significantly increased by 34%, suggesting a surge of interest from both traders and investors. This escalation in trade activity serves as an encouraging signal for GOAT owners, demonstrating ongoing excitement even amidst a significant market decline.
GOAT technical analysis and key-level
Based on technical analysis from AMBCrypto, GOAT seems to be showing signs of a downtrend, as it has developed a bearish head-and-shoulders chart formation over a four-hour period.
In trading and investing, this pattern is often seen as a sell-off signal.
If GOAT breaks through the $0.60 resistance level on a closing basis of a four-hour chart, it’s likely to experience a significant drop of around 16%. This could potentially push its price down to approximately $0.51 over the next few days.
Bearish on-chain metrics
The pessimistic viewpoint towards GOAT is reinforced by data from blockchain analysis. As per the blockchain analytics company Coinglass, at the current moment, GOAT’s Long/Short ratio is 0.928, suggesting a dominantly bearish attitude among traders, implying they prefer short positions over long ones.
Read Goatseus Maximus’ [GOAT] Price Prediction 2024-25
Moreover, its open interest has significantly increased by an astounding 99% within the last 24 hours and by 16% in the past four hours. This escalating open interest suggests heightened involvement and the creation of additional positions relative to the preceding day.
A growing number of traders entering into positions (open interest) along with more short positions than long ones (Long/Short ratio less than 1) suggests that the market is presently under bearish control, meaning that sellers have the upper hand on this particular asset.
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2024-10-26 05:11