Espresso ($ESP) continued its strong upward momentum after breaking out from a prolonged consolidation range, indicating a noticeable shift in market sentiment. The token surged over 34% in the past 24 hours and gained over 42% in the last week.
Trading activity also accelerated sharply, highlighting more active participation from investors in both the spot and derivatives markets. Although the rally paused after reaching an intraday peak around $0.121, market indicators continue to support a constructive outlook. Nevertheless, traders are now watching to see if buyers can defend recent gains and maintain the current bullish structure.
Bullish Trend Remains Intact Despite Short-Term Cooling
$ESP recently climbed from around $0.075 and then reached an intraday high near $0.121. This move lifted the token above its 20, 50, 100, and 200-day exponential moving averages. Consequently, the breakout confirmed a stronger short-term trend after weeks of sideways trading.
The current pullback to $0.106 appears to reflect profit-taking rather than aggressive selling. Moreover, the price continues to trade above several key technical support zones.
The first support lies at $0.0960, coinciding with the 0.618 Fibonacci retracement level. A break below this zone could target $0.0883, followed by stronger support near $0.0807.
On the upside, immediate resistance is in the $0.1090 to $0.1100 range. Buyers also continue to watch the recent high at $0.1208. A decisive move above this level could open the door for another leg higher as bullish momentum strengthens.
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However, traders should closely monitor momentum indicators. The Stochastic RSI remains above 80, indicating the market has entered overbought territory. Therefore, a brief consolidation or additional profit-taking may occur before the next directional move.
Open Interest Signals Growing Market Conviction
Derivatives data also point to increasing confidence among market participants. Open interest surpassed $25 million in April, then gradually declined below $6 million by late June. This prolonged decline reflected waning speculative demand and lower trading activity.
However, a notable reversal occurred in July. Open interest surged to approximately $27.52 million while $ESP traded up to around $0.11. Furthermore, the sharp rise suggests new capital is entering futures markets, rather than existing traders merely repositioning.
A rise in open interest alongside price increases often signals stronger conviction in the current trend. Consequently, volatility may remain elevated if leveraged participation continues to grow.
Spot Flows Indicate Buyer Return
Spot market activity provides another encouraging signal for $ESP. Earlier this year, inflows exceeded $1.5 million during a sharp rally, followed by significant outflows as investors secured profits. Since then, both inflows and outflows have gradually become more balanced, reflecting a calmer market environment.
Recent data now shows moderate positive net flows, including approximately $349,700 recorded on July 27th. Moreover, sustained buying pressure could amplify market sentiment if inflows continue to outpace outflows in upcoming sessions.
Combined with improving derivatives activity and a technically robust price structure, $ESP appears well-positioned to challenge higher resistance levels, with key support near $0.0960 remaining intact.
Espresso ($ESP) Technical Overview
Key Levels Remain Critical as Espresso Consolidates Following a Strong Breakout:
Upside Levels: $0.1090–$0.1100 mark the first resistance zone, followed by the recent high at $0.1208. A decisive daily close above this barrier could accelerate buying momentum towards $0.1300 and $0.1450 as bullish sentiment intensifies.
Downside Levels: Initial support sits at $0.0960, aligning with the 0.618 Fibonacci retracement. Additional support lies at $0.0883, followed by $0.0807, while the previous breakout zone near $0.0712 remains the final level defending the broader uptrend.
Momentum Checkpoint: The Stochastic RSI remains in the overbought zone above 80, indicating potential short-term consolidation despite the prevailing bullish structure. Meanwhile, rising open interest and improving spot inflows continue to support the recovery.
Will Espresso ($ESP) Continue to Rise?
Espresso's near-term prospects depend on whether buyers can defend $0.0960 while gathering sufficient momentum to overcome the breakout barrier at $0.1208. The strong rise in open interest suggests ongoing inflow of new capital, while recent positive spot net flows indicate renewed accumulation.
If buying pressure persists, $ESP could continue advancing towards $0.1300 and possibly $0.1450. However, a loss of $0.0883 would weaken the current bullish structure and increase the risk of a deeper correction towards $0.0807.
