- DIA has a strong bullish structure and high buying pressure.
- The rejection of the weekly resistance and the 16% drop allowed the market to become overloaded.
Decentralized information asset [DIA] has moved higher on the price charts. Since September 29, the token has risen 68% and trading volume on Monday was sixteen times the volume on September 28.
After these huge gains, the token entered a resistance zone on the weekly chart. The Bitcoin [BTC] This move has helped DIA’s sentiment. Should long-term holders cash out or wait for bigger gains?
A plea for a sustainable movement
Source: DIA/USDT on TradingView
The strong, rapid rise has left many traders on the sidelines and rushing to join the rally that DIA is underway.
This surge in interest could push the DIA higher, but it will also likely lead to volatility due to futures market activity from overzealous late bulls.
The move to $0.81 was followed by a rejection, and the price is down 16% from the local high of $0.837. The indicators on the daily time frame supported the bullish outlook.
The CMF reached a high last seen in November 2023, and the MACD rose higher than it has been since September 2021.
But they are lagging indicators and therefore will follow the price and not predict the next move.
Arguments for the recent increase that marks a local top
The weekly price chart showed that a retracement to $0.54-$0.38 is possible, being the 50% and 78.6% Fibonacci retracement levels.
With many traders sidelined by the sudden move, a retracement and consolidation could buy time for the next rally in the coming months.
The average coin age has been trending higher since July, indicating accumulation. The 365-day MVRV ratio showed that 75% of holders made a profit during this period.
Realistic or not, here is DIA’s market cap in BTC terms
This could lead to intensive profit taking and a price drop.
AMBCrypto believed that the bulls are unlikely to push prices past the $0.81 zone. The market is likely overextended, and a return to key Fib levels could trigger the next rally.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
