The decentralized asset of information (DIA) has surged dramatically on the price charts. Since September 29, the token has risen 68% and the trading volume on Monday was sixteen times the trading volume on September 28.
The token has hit a resistance zone on the weekly chart after these big gains. Bitcoin (BTC)’s move has helped improve DIA sentiment. Should long-term token holders take advantage now or wait for bigger gains?
Possibility of continued movement
The rapid and strong rise has left many traders out of the market as they try to catch up with DIA’s rally. This surge in interest could push the token higher, but it is also likely to lead to volatility due to activity in the futures market from late traders.
The price reached $0.81, followed by a price rejection, where it fell by 16% from the local high of $0.837. Indicators on the daily time frame supported the bullish outlook.
The CMF indicator has reached highs not seen since November 2023, and the MACD indicator has risen to levels not seen since September 2021. However, these indicators are lagging indicators and therefore follow the price and do not predict the next move.
Arguments that the recent rise may represent a local top
The weekly chart showed that a pullback to $0.54-0.38 levels is possible, which are the 50% and 78.6% Fibonacci retracement levels. Since many traders were left out of the market due to the sudden move, the pullback and consolidation could provide time for the next round of upside in the coming months.
The average age of the coin has been rising since July, indicating accumulation. The 365-day MVRV indicator shows that 75% of DIA holders during this period were in profit. This could lead to heavy profit-taking activity and a price drop.
AMBCrypto believes that the market may be oversold, and a pullback towards key Fibonacci levels could lead to the next round of upside.
Disclaimer: The information provided does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
