CSPR breaks out of multi-month downtrend after 100% rally

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As a seasoned researcher with over two decades of experience in the dynamic world of cryptocurrencies, I must say that Monday’s surge of CSPR was nothing short of exhilarating. This altcoin has seen more twists and turns than a rollercoaster ride at an amusement park!

On Monday, there was a substantial rise in the value of CSPR, exceeding 100%, due to growing interest from futures investors and traders, coupled with a marked increase in market volatility.

On November 18th, the native token of the Casper Network blockchain platform, called CSPR, reached an intraday peak of $0.026 – a level not seen in the previous five months. This surge in value elevated its total market capitalization to approximately $250 million at the time of writing.

The surge in CSPR’s price appears to align with the broader market optimism fueled by Bitcoin (BTC) reaching an all-time high of $93,477.11 on November 13, maintaining a steady level above $91,000 as we speak.

After experiencing a drop for several months, this cryptocurrency has seen its value plummet by more than 81% since March, primarily because of security concerns and waning community engagement. Yet, on November 16th, there were signs suggesting a possible turnaround might be underway.

The number of outstanding contracts for CSPR’s future markets, as reported by CoinGlass, has experienced a substantial surge. In just one day, the open interest has risen by approximately 101.51%, going from $2.9 million to $5.9 million. This increase in open interest indicates a growing appetite among traders for CSPR futures.

Additionally, the funding rate, adjusted for weight, has moved from a significantly low -0.0982% to a favorable 0.1120%. A positive funding rate implies that more traders are choosing to hold long positions, indicating that most market participants anticipate an increase in the asset’s price, as they believe it will appreciate.

Traders are willing to spend more than the current market value to hold onto their long-term investments, as they believe there will be additional price increases in the future.

Additionally, the daily trading volume for CSPR has significantly increased more than six times compared to the last day, reaching approximately $471 million.

On Monday, impressive advancements caused CSPR to claim the number one spot among top gainers on CoinGecko and rank as the 290th largest cryptocurrency by market capitalization. Yet, despite this progress, the token is still 98.53% below its peak value of $1.33 achieved on May 12, 2021.

There’s a lot of optimism within the cryptocurrency world regarding CSPR. According to CoinMarketCap’s social sentiment analysis, an impressive 92% of traders are anticipating short-term profits. Additionally, increased interest from investors has led to CSPR becoming a popular topic on Google trends.

CSPR could consolidate

Nevertheless, based on the technical indicators, it appears that CSPR might stay within a range for some time before continuing its upward trend again.

In the one-day chart for CSPR/USDT, the altcoin’s price was found above the upper Bollinger Band, showing signs of overbought conditions. Simultaneously, the Relative Strength Index (RSI), which had reached a high of 86 the day prior, had declined to 74 at the moment, hinting that buying pressure might be lessening.

Although the Moving Average Convergence Divergence (MACD) indicates that the asset is still in a bullish state, as both the MACD and signal lines are above zero, with the MACD line notably higher than the signal line. This might suggest that CSPR could be experiencing a temporary consolidation period before the overall upward trend resumes.

Based on an expert’s perspective, if CSPR manages to change its $0.025 resistance level into a support level, the next potential resistance point could be around $0.05. Currently, the cryptocurrency is being traded at roughly $0.019.

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2024-11-18 12:18