Siren [SIREN] rallied by 17% in 24 hours and was up nearly 300% over the past week. This extraordinary performance in the short term has captured the attention of traders and investors once again.
In the second half of March, the memecoin burst past the $0.76 resistance and briefly ascended past the $4-level. However, it has retraced this rally since then.
The major rally and the deep retracement since then must have rocked investor confidence. Based on the 1-day chart’s price action, it can be argued that the move below the swing low at $0.225 earlier this month has shifted the structure bearishly.
On the other hand, the volume on 4 April was the highest daily volume since 7 February. It was a statement of intent from the buyers as they rescued SIREN’s price from falling even further below the $0.225 swing low.
The OBV made new highs following this spike in demand, with the Stochastic RSI climbing back from the bearish extreme and heading higher. The MACD also seemed to be laboring to climb back above the zero line.
Which way should SIREN traders form their bias?
The recent momentum and buying volume were a fantastic recovery from the extremely deep retracement. At the same time, the retracement in question might have been a structural shift.
Based on the evidence at hand, the latter scenario appeared more likely. Given the market sentiment and potential for a Bitcoin [BTC] sell-off, traders should be prepared to take profits at key resistance levels.
The triangle formation in March saw a bearish breakdown, but the consolidation around $1.88 affected the pattern’s reliability. Some analysts would see the pattern is broken and invalidated too.
What matters is the sentiment the pattern is trying to capture. The willingness among sellers to force prices lower after increasingly shallow bounces after 23 March is the highlight.
Now, the $0.762-level is under siege once more. A breakout beyond this level will likely see SIREN rally to $1.88. These are the two levels that holders and traders can use to take profits.
Final Summary
- SIREN has rallied by nearly 300% in a week, recovering from the drop below the $0.2255 swing low.
- Current move would likely see a breakout to $1.88, but traders and holders should remember to take profits.
