Key Takeaways
Why has Stronghold SHX rallied?
The rally was most likely caused by the listing on Uphold, which sparked high demand in recent hours.
Has the downtrend been breached?
In the short term, yes, an uptrend was on the way to being established. The $0.0139 resistance, which is yet to be breached, was one of the last significant hurdles to clear.
Stronghold [SHX] rallied by 44.1% in the past 24 hours, with a nearly fivefold daily trading volume expansion, according to CoinMarketCap. This came after its listing on the digital trading platform Uphold, announced on the 26th of November.
Despite the positive news, Weighted Sentiment was slightly negative, and Social Volume was low as well, according to Santiment data.
This suggested a lack of hype around SHX, a token with a mere $5.56 million market cap at the time of writing.
Bullish move sends SHX into overbought territory
Source: SHX/USD on TradingView
The 4-hour chart showed a clear bullish structure as buyers flipped the $0.011 region from supply to demand.
SHX bulls also drove prices past the $0.0125 resistance, a Fibonacci retracement level drawn from the previous downward impulse.
On top of that, the listing news pushed buyers to drive a short-term recovery and reclaim much of November’s losses. At press time, the price still traded below the $0.0139 resistance on the H4 timeframe.
The OBV has climbed higher, past recent weeks’ highs, showing heavy demand. The RSI on the H4 chart was at 81, in overbought territory, but that alone was not a reason to expect a pullback.
Shallow retracement remains possible
Source: SHX/USD on TradingView
Lower-timeframe price action showed that $0.0115 acted as a support level that could be revisited. That area sat inside the former November supply zone, which now aligned with the H4 demand region.
The RSI has reset to neutral 50 and the OBV, though it dipped slightly, retained its uptrend.
Hence, it is likely that a shallow SHX retracement would be followed by another rally, provided demand remains strong.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
