Cortex volume surged as its price dropped over 54% on the chart
If the reversal trend strengthens, CTXC could register a breakout
Cortex (CTXC) trading volume surged while its price significantly dropped on the chart. In fact, the spike in CTXC volume was 4 times compared to previous weeks. This coincided with a sharp price drop from around $1.05 to a low near $0.37, marking a decline of about 45%.
The 'Orderblock' of CTXC at $0.25 historically has acted as both support and resistance, and at the time of writing, the price seems to be approaching that area. This area has elicited a modest recovery response, suggesting some resistance to further declines on the chart.
Source: Trading View
Despite the downward trend, the increase in volume accompanying the price drop indicates trader accumulation activity, anticipating potential value.
The MACD indicator shows a near convergence and the potential for a bullish crossover, implying a bullish trend may be forthcoming. If this reversal trend strengthens, CTXC could record a breakout.
This suggests that a critical area for this potential price rally could be if CTXC can maintain above the resistance level of $0.40. That is the pathway for a more significant recovery.
Profit at breakeven price
The distribution of CTXC addresses based on their profitability, compared to breakeven price levels, shows that 41.19% are in profit. These addresses entered the market at $0.385250.
Conversely, 57.19% of addresses are facing losses at price points from $0.40 to $0.50, where the largest losses are concentrated. Addresses at breakeven only account for 1.61%, indicating minimal trading activity.
Source: IntoTheBlock
The future market behavior of CTXC may revolve around these levels as addresses in a loss situation might decide to sell if the price approaches their entry points, potentially limiting upward price movements.
Conversely, a sustainable upward trend could convert more addresses into a profitable state, encouraging a more optimistic sentiment in the Cortex market.
New acceptance rate of CTCX
The new acceptance rate of Cortex saw a significant spike in May 2018, reaching nearly 50%, coinciding with a peak price of about $0.30. This trend suggests that previous high acceptance rates have driven price rallies, although this correlation has diminished over time.
Subsequent spikes in the acceptance rate throughout 2019 and 2020 showed a similar, albeit lesser, impact on price. This indicates diminishing returns from new acceptance events on asset prices.
Source: IntoTheBlock
By 2024, the acceptance rate stabilized around 8.97%, significantly lower than previous peaks. At the same time, it does not reflect any significant price changes, as prices remained stable around $0.80.
This pattern shows that while previous spikes in acceptance strongly affected the price of Cortex, that influence has waned. Possibly due to market maturation or decreased sensitivity in responding to changes in acceptance.
If the acceptance rate continues to rise, the previous impact on price suggests that future price movements may no longer be strongly correlated with new acceptance rates. Thus, this implies a decoupling of user growth from direct price drivers.
