Every sector, including entertainment, seems to have embraced blockchain.
At press time, RaveDAO [RAVE] surged by more than 29%, emerging as the third-highest gainer among the top 200 cryptos by market cap. This spike took the weekly gains to above 45% at press time.
An earlier analysis of RaveDAO on AMBCrypto noted the crypto trading in a long-term trend reversal pattern. Now, it seems to have broken free of the pattern it was struggling to breach back then.
Can these bulls stay longer and surpass $0.65?
Key drivers of RAVE crypto
A couple of factors, including holder growth, drove the day’s rally. Over the past week, the trend has been rising, hitting a peak of 45.88K from 45.75K. The increase indicated that more traders were betting on the crypto.
Additionally, attention was top. The altcoin graced the charts of top gainers in Coinbase Spot and Binance Futures. This meant that the coin was not only trending in the U.S. but also across the globe.
Its token trading volume also jumped by 300%, reaching $75 million as per CoinMarketCap data. With everything pointing north, is the current breakout confirming a trend shift?
Is RAVE’s breakout a trend-shift confirmation?
On the charts, RaveDAO’s token broke free from a massive inverted heads-and-shoulders pattern and rallied past $0.50. The neckline at $0.40 was yet to be retested; hence, there was a possibility of such a revisit. The recent candlestick movement was showing it.
However, some could argue that the breakout is too strong. This could have confirmed a trend shift. Usually, the market tends to do retests, though not all the time.
Buyers were in full control and in great momentum, as seen on the Awesome Oscillator (AO). Furthermore, the Choppiness Index (CHOP), which was at 37 as of writing, confirmed the trend clarity. When CHOP is below 40, it signals one-directional movement.
Successfully holding above $0.50, it meant there was a possibility of rallying toward $0.60 and past $0.65. Otherwise, RAVE crypto could revisit the $0.40 zone for a retest, and a breakdown below it would regard the current move as a fakeout.
Why is caution needed?
Despite the dynamic nature of liquidity, much of it was forming on the downside, not above. Data showed that over the last two days, as shorts were cleared, long orders were being stacked below $0.48.
The clusters further supported the earlier idea of a potential retest. This is because liquidity below $0.48 could pull the price so as to trigger long orders, which would give it the power to surpass $0.60. Longs were densely clustered between $0.41 and $0.48.
The few shorts that were less dense were building between $0.53 and $0.56, indicating that the current rally could pause at that level. However, this was not an assurance, as the price can surpass that.
Final Summary
- RAVE crypto rallies 29% amid growth in the number of holders, volume, and attention.
- RAVE price faced the risk of downside since a lot of liquidity formed below $0.48.
