RedStone bulls eye $1 as RED breaks past KEY supply zone!
The RED market did not show signs of being overextended, and a brief dip to $0.55-$0.6 could be followed by further gains.
Key Takeaways
Following the Upbit listing on Friday, RedStone token prices surged 66% on the day, breaking above the $0.5 supply zone. Bulls would like to see sustained buying pressure to drive RED even higher.
RedStone [RED], the fast-growing oracle token, witnessed a 101% surge in daily trading volume over the past 24 hours at press time.
However, CoinMarketCap data revealed that the volume surge came alongside a substantial short-term price drop of 9.38% in 24 hours.
During the same period, Bitcoin [BTC] and Ethereum [ETH] posted losses of 1.78% and 2.09% respectively. The total altcoin market capitalization had dipped 1.3% in 24 hours, helping explain the RedStone price losses.
What was the long-term and short-term trend of the token, and should you buy, sell, or wait for better market conditions?
Can RedStone bulls defend the recent gains?
The catalyst behind the swift rally, on the 5th of September, was the Upbit listing announcement. At the highest point of $1.19, RED had rallied 193% for the day.
The RED/USDT pair on Binance saw $139.57 million in spot trading volume on the day, compared to the 20-day average volume of just $17 million.
A good chunk of the move has been shed to selling pressure and profit-taking. A set of Fibonacci retracement levels was plotted based on the day’s remarkable rally. It showed that the $0.573 was a key support.
Further south, the $0.5 demand zone was a psychological and technical area for the buyers to defend. It had been a resistance since April, and a retest as support should offer a good buying opportunity.
To the north, the next price targets were $0.7, $0.9, the round-number resistance at $1, and the $1.19 level, which was the high on the 5th of September.
The OBV surged higher following the recent buying spree, and the Awesome Oscillator noted bullish momentum with no sign of a bearish divergence, at press time.
The Moving Averages haven’t yet caught up to the price after its one-day surge of 65.87%.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
