- LimeWire’s recent rally showed strong buying interest as it broke above key resistance levels
- Buyers should watch for a potential bullish 20/50 day EMA crossover as it could signal the start of a more extended uptrend
LimeWire (LMWR) has been in the spotlight recently after a massive rally over the past few days. The altcoin jumped by over 200% from its 5 November rally, hitting a peak of around $0.32 on 17 November. This surge pushed LMWR into a price discovery phase after finally breaching its long-standing resistance.
At press time, LMWR was trading at around $0.27, up by roughly 65% in the last 24 hours. The price action tested the resistance around $0.3 multiple times but struggled to find a decisive close above this level. Interestingly, the $0.3 resistance also seemed to align with the 200-day EMA – Forming a critical zone for bulls to surpass.
Can LMWR buyers sustain the momentum or will sellers reclaim control?
Source: LMWR/USDT
The latest rally saw LMWR clear the 20-day EMA ($0.151) and the 50-day EMA ($0.1545), with the price now attempting to hold above these short-term supports. Should LMWR witness a bullish crossover of the 20-day EMA over the 50-day EMA, it could pave the way for a more sustainable recovery, targeting the $0.36 resistance.
However, a failure to close above the $0.3 zone could lead to a short-term correction, with the immediate support resting at $0.2. The RSI, at press time, stood at around 81, showing that LMWR was in the overbought region.
Thus, buyers need to be slightly cautious here as an RSI above 80 can indicate a potential reversal if selling pressure mounts.
Here, it’s worth noting that the altcoin saw an over 260% jump in its 24-hour trading volumes. This jump coincided with over 65% daily gains, showing a healthy uptrend. Even so, traders should also monitor Bitcoin’s price movement. Especially since overall market sentiment could influence LMWR’s next steps.
MACD and Volume Profile Analysis
The MACD indicator recently flipped positive, with the MACD line crossing above the signal line. The MACD line jumped above the zero-mark while the signal line was on the verge of crossing the equilibrium. A sustained uptrend of these two lines would reaffirm the near-term bullish trend on LMWR charts.
Finally, the Visible Volume Profile Range (VPVR) revealed a significant area of buying activity between $0.15 and $0.21. This zone could act as strong support in the event of a pullback.
Conversely, the volume profile revealed limited resistance above $0.32, indicating that a decisive break above this level could open the door for rapid gains towards $0.36 and beyond.
