After holding around $0.28 since failing to hold $0.30 three days ago and falling to $0.25, OriginTrail (TRAC) has rebounded strongly.
In doing so, TRAC made a significant price move, breaking out of the range to reach a monthly high of $0.38.
At the time of writing, OriginTrail was trading around $0.35, marking a 32% rise on the price charts. During the same period, TRAC’s trading volume soared 300% to $30 million, while the market capitalization soared 34% to $171 million.
The simultaneous rise in volume and market capitalization signals strong market activity supported by constant capital inflows.
OriginTrail builds on AI narrative and Palantir comparison
OriginTrail is experiencing renewed market attention, largely driven by the AI narrative.. The crypto community has referred to OriginTrail as the decentralized Palantir.
According to Chain Ink, OriginTrail stands out from other AI agents by its memorization capacity. The decentralized knowledge graph provides AI agents with shared memory and built-in provenance.
Thus, OriginTrail solves the problems affecting other AI agents when it comes to veracity and verifiability. These features have made it particularly attractive to many market players considering riding the AI wave.
Cryptoguku remarked:
OriginTrail is a Decentralized Palantir.
As the community marvels at the narrative prospects of AI, speculative demand for the native TRAC token has skyrocketed.
Speculative demand dominates the market
With the crypto market eyeing Thanks to the potential of OriginTrail in the field of AI, traders have started taking strategic positions. As demand built, the altcoin rebounded and speculators returned, attempting to capitalize on the gains.
According to data from Coinalyze, the futures buying volume increased to 3.17 million, while the selling volume decreased to 1.94 million.
As a result, the futures market recorded a positive buy-sell delta of 1.23 million, a clear sign of strong buying pressure. Historically strong speculative demand has bolstered short-term price performance, leading to more gains on the price charts.
Profit Realization Rises, Threatening Rally
As expected after OriginTrail rebounded from $0.25, holders who were underwater rushed to cash out. According to CoinGlass, Spot Netflow soared to an all-time high of $518,000, marking a massive jump from the previous day’s -$15,000.
A positive Netflow indicates that more TRAC entered the exchanges than exited. Historically, higher foreign exchange flows have increased the supply available for sale, thereby increasing pressure on the market.
Can TRAC keep the momentum going?
OriginTrail is currently under strong upward pressure despite the increase in profits made. In fact, the altcoin’s Relative Strength Index (RSI) rose from 42 to 65, entering deep into the bullish zone.
At such high levels, the RSI suggests that buyers have significant control over the market, driving momentum.
At the same time, the Directional Movement Index (DMI) once again confirms the strength of this trend. The positive index rose to 42 while the negative index fell to 8, confirming the bullish strength.
These indicators suggest that the dominant trend will continue. If demand holds, TRAC will topple the $0.4 resistance, but if profit-taking continues, OriginTrail will fall below $0.3, with $0.26 as support.
Final summary
- TRAC jumped 32%, hitting a monthly high of $0.39, before returning to the backdrop of growing speculative demand
- OriginTrail has brought the AI narrative to market attention, as crypto traders compare the AI token with Palantir.
