SIREN rallies 61% in a week – Technical factors pushing the token to $2
Traders can use the short-term breakout and upward momentum to buy but should also remember to take profits.
Siren [SIREN] has rallied 27.8% in 24 hours and was up 61% over the past week. The strong gains came after almost three weeks of consolidation for the AI-memecoin hybrid.
During this consolidation, SIREN was trading above $0.64 for the most part. Last week, AMBCrypto had reported that a price move toward $1.27 was possible.
With the strong recent gains, the memecoin was on its way to achieving this price target. What trends are likely to come next?
Decoding the SIREN volatility
A month ago, AMBCrypto had reported that the break below $0.225 in early April signaled a bearish structural shift. Despite this shift, the report warned of a possible rally to $1.88, the local high.
In mid-April, the memecoin reached a local high of $2.25 before retracing the entire rally. Thereafter, it settled into the 3-week consolidation mentioned earlier.
After diving below the $0.225 swing low, SIREN bulls managed to break the $1.88 local high. In recent days of trading, the $0.89 local resistance has also been pushed aside.
The $1.88 break, retracement, and now the recent bullish momentum make it seem like SIREN has a bullish structure. This argument gains strength when you consider that, after breaking below $0.225, the memecoin has not set a new swing low.
Meanwhile, the OBV continued to climb higher, and the RSI was also above neutral 50. The OBV’s ascent, in particular, suggests that the selling pressure in late March has since been erased, and buyers have the upper hand.
Traders’ call to action – Remain fluid
Technically, the swing structure was bearish, but the OBV hinted otherwise. Traders can use the current momentum to ride the rally higher, to the $1.9-$2.0 resistance zone. Betting on further gains might be dependent on the reaction around $2.
If the buyers can flip this region to support, and there are no volume or momentum divergences on the higher timeframe charts, the rally might have more room to grow.
Traders will have to wait and watch, but in the short term, they can expect a move toward the $2 highs once again.
Final Summary
- The SIREN short-term momentum is something traders and speculators will be looking to profit from.
- Expecting a breakout past the local highs around $2 could be a mistake. Traders need to wait and watch the memecoin’s reaction from key areas to make their decisions.
