Bitcoin moved past the $30k mark in recent hours after finding some support at $28.5k, and this move upward prompted many altcoins to rally. Decentraland saw a 45% rally in recent hours, and EOS flipped its bias toward bullish after a week of intense selling. PancakeSwap could see a quick move above the $5 area in the next few hours, provided Bitcoin can hold above the $30k mark.
MANA pumped nearly 45% in the past few hours as the short-term outlook shifted from strongly bearish toward bullish momentum. The market structure had flipped to bullish after the price formed a higher low at $0.7 and broke past the $0.8 lower high of the downtrend of the past few days.
Does this mean that a longer-term trend reversal is in sight? Not really, despite the buying pressure in recent hours. The OBV spiked upward alongside the price to reflect heavy buying volume on MANA’s surge from the $0.7 level to $1.03. The $0.95-$1 area could offer a buying opportunity on a retest for a scalp long, with take-profit targets at $1.2 and $1.3.
However, there is heavy resistance overhead, and risk has to be carefully managed.
EOS was a similar story on the charts to MANA after it bounced from the $1.23 support level and broke past the $1.35 level. In the past few days, the $1.4 and $1.51 levels have served as support. Therefore, on the way up, they are likely to act as strong resistance levels as well.
The RSI climbed above neutral 50 to denote a near-term momentum shift toward the bullish side, while the CMF also briefly poked above the +0.05 mark. Hence, the capital flow was significant into the market during the rally of the past few hours.
The Stochastic RSI was in overbought territory and combined with the heavy resistance ahead, EOS could see a move back toward the $1.34 mark.
The Volume Profile Visible Range tool showed that the Point of Control lay at $4.3 for CAKE, a level that CAKE had only recently breached. Over the past few days, the price did not see notable trading activity in the area from $4.6 to $5.3, which means that CAKE might be able to traverse this distance upward quickly.
The momentum appeared to favor the bulls, as CAKE broke out past the POC and the RSI climbed above neutral 50 as well. The MACD was also on the verge of crossing over above the zero line.