Rarible rallied 94.5% in the past 24 hours. CoinMarketCap data showed that the $7.27 million market cap token saw a 20-fold increase in daily trading volume.
The high volume was unable to break the $0.5 resistance, and the price was down to $0.35 at the time of writing.
As the native token of the Rarible NFT platform, Token Terminal data showed that onchain user counts were quite small. The metrics didn’t grow over time, either.
The token holders count has stayed at 24.4k-24.6k over the past year, and the active weekly users have been under 1,000 since April 2023. The platform’s NFT sales volume was also quite small.
Price analysis shows a year-long downtrend for RARI
The bearish structure breaks since November were nothing new. Since January, RARI prices have been trending downward.
The CMF, which briefly climbed above +0.05, had previously climbed past the same benchmark in December 2024.
The OBV’s upward spike reflected the heavy trading volume during the weekend, but was not a sign of bullish confidence. To shift the swing structure, a move above the $0.5 level was needed, but it has not yet come.
Exploring the bullish case
The rally past $0.29, a recent local swing high, was a sign of a bullish internal structure shift. As noted earlier, the swing structure remained bearish. In this case, a revisit to the $0.29 level could see the RARI bounce resume.
This is an unlikely scenario, given the long-term downtrend and the lack of users and demand.
Traders’ call to action — Sell the bounce
Due to the Bitcoin [BTC] bounce to $90k on Monday, many altcoins saw a noticeable uptick in prices after steady losses in recent weeks. This was not the beginning of a recovery, but a bounce that sellers can target.
It was the same for the RARI token. A breakout past $0.5 would be a technical trend reversal, but it is hard to go long after a year of downtrend.
Final Thoughts
- The RARI crypto token saw a sudden price bounce and an immense increase in trading volume.
- After a year-long downtrend, the chances of a long-term trend reversal were slim.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
