- AUCTION could rally to $76 and $93 next
- On-chain metrics revealed that the token flashed distribution trends
Bounce [AUCTION] has rallied by 140.89% since last Saturday. At the time of writing, the token was trading at $60.3, with its 24-hour trading volume remarkably high too. In fact, CoinMarketCap’s data revealed that the daily volume was $1.33 billion. With a market cap of just $395.84 million, the volume to mcap ratio stood at 335%.
This seemed to be extraordinarily bullish – In the short term. The price was just under 17% away from its all-time high at $70.44 too.
Hence, the question – Should holders take profits now, or wait for more gains?
Greed and FOMO should not take the upper hand now
Source: AUCTION/USDT on TradingView
The 1-day price chart revealed that the trading volume has been increasing since February. It outpaced the November-December volumes and maintained its advantage, even as the price extended higher.
The Money Flow Index was at 97 on this timeframe – Its second highest level after a value of 98 was posted in July 2023. With AUCTION’s price now just a stone’s throw away from its all-time high, it might be a good chance to book profits.
Source: Santiment
Other very good reasons to take profits were illuminated by Santiment metrics. The supply held by whales has been in decline since mid-February. This suggested that whale holdings were in a distribution phase.
The Mean Coin Age has also been trending south since February. Together, they highlighted a network-wide distribution. The decline in whale supply meant that the bigger market participants were using the rally to take profits.
The 30-day MVRV ratio was at 92.98% – The highest it has been since December 2023. This implied that short-term AUCTION holders were, on average, at a high profit. This could be a good time to take profits, at least partially.
Source: AUCTION/USDT on TradingView
For AUCTION holders determined to HODL, the Fibonacci extension levels showed that the next target was at $76.23. Beyond that, the 100% Fibonacci retracement level showed that $93.25 would be the next target.
These targets would be achievable. The circulating market capitalization of the project was only $404 million. However, given the sentiment across the market and especially for smaller altcoins, profit-taking might be the prudent course of action for investors.
New buyers in recent days were in profit due to the quick gains, but FOMO might be a bad idea. Especially since the MFI indicated the market was overextended.
