COTI nears $0.149 resistance, a potential break from its bearish trend since Jan '24.
Frequent liquidations highlight COTI's speculative market with high leverage exposure.
Strong support in the $0.036-$0.059 range has stabilized COTI, preventing deeper declines.
In a bullish turn for COTI, the asset has shown momentum as it attempts to break through long-standing resistance levels, a significant shift for traders following the asset closely. The COTI/USDT pair on Binance's daily timeframe reveals a clear descending triangle pattern, highlighting a bearish trend that has persisted since January 2024.
This trend, defined by a descending resistance line and multiple lower highs, has indicated consistent pressure on COTI’s price, with each peak forming a lower point than the previous one.
Support for COTI has consistently emerged in the $0.036 to $0.059 range, a zone shaded in gray on Binance’s daily chart. This area has served as a strong foundation, preventing the price from further decline through multiple rebounds.
As COTI’s price approaches the $0.149 horizontal resistance level, it tests a crucial threshold that, if surpassed, could signal a departure from the previous downtrend.
With the current price at approximately $0.106, breaking above this resistance could pave the way for a more sustained rally toward higher targets, potentially reaching $0.279 if bullish momentum continues.
The market structure reflects this tension between key support and resistance areas, with traders likely monitoring COTI’s ability to maintain its position above the $0.149 mark. Failure to achieve this breakout could result in another retest of the lower support zone, reaffirming the current trend.
COTI has witnessed heightened trading activity recently, with a 2.85% price increase over the last 24 hours, reaching $0.1063 as of the latest data from CoinMarketCap. The cryptocurrency’s market capitalization stands at $190.53 million, marking a 2.90% gain.
Source: CoinMarketCap
In recent months, COTI’s market has been marked by recurring liquidations of long and short positions, signaling a highly speculative trading atmosphere. Significant liquidations on both sides have been triggered by volatility, suggesting that traders employing leveraged positions are particularly vulnerable to abrupt price swings.
Source: Coinglass
A substantial wave of long liquidations in June coincided with a sharp decline in COTI’s price, forcing out traders betting on a price increase. Later, in September, COTI experienced a similar surge in short liquidations as prices rebounded, leading to forced closures of short positions as the market turned upward.
The frequency of these liquidation events, including smaller yet frequent spikes in October and early November, underscores the speculative nature of COTI’s market.
