Weighing RAVE’s 9.5% fall against bullish factors – Is a trend shift near?
A steep decline hasn’t shaken bullish signals—RAVE's pattern suggests that traders may be eyeing a reversal.
RaveDAO [RAVE] extended its decline even as the broader market continued its recovery. On the 26th of May, the asset fell 9.50% over the past 24 hours, trading at $0.6350 at press time, a level RAVE has been holding for the past four days.
Market participation also declined notably during the same period, with trading volume dropping 11% to $10.18 million.
Will RAVE’s bearish trend end?
RAVE’s four-hour chart has formed a bullish falling wedge pattern and appears poised to end its bearish trend. The price is currently trading within the narrow range of the falling wedge pattern, suggesting that it is preparing for a potential breakout.
Based on the current price action, RAVE could only end this bearish trend if it breaks out of the falling wedge pattern and closes a four-hour candle above the $0.68 level.
If this happens, the possibility of a 36% price surge increases significantly, potentially pushing the asset toward the $0.925 level.
However, if RAVE fails to break out and instead falls below the key local support level of $0.614, it could continue its decline in the coming days.
At press time, the asset remained in a downtrend as it continued to trade below the 200-day Exponential Moving Average (EMA) on the four-hour chart. Meanwhile, its Average Directional Index (ADX) declined to 18.31, indicating weak trend strength.
Trader sentiment turns bullish
Despite the bearish price action, traders on Binance appeared to have a bullish outlook, RAVE’s Long/Short Ratio was 2.8212 at press time, indicating that the majority of traders were betting on the price to rise.
Meanwhile, the OI-Weighted Funding Rate has turned positive and climbed to 0.0112%, suggesting growing bullish sentiment and increased demand for long positions among traders.
Long-term holders also appeared to be following the same trend. The Spot Inflow/Outflow data revealed that exchanges have recorded an outflow of $136.25K worth of tokens, hinting at potential accumulation.
Final Summary
- RAVE declined 9.50% but has formed a bullish pattern, but the bearish trend could only end if it closes a four-hour candle above the $0.68 level.
- Traders maintained a bullish outlook, as they appeared to be betting on further upside.
