Every industry, including entertainment, seems to have adopted blockchain.
At press time, RaveDAO (RAVE) surged over 29%, becoming the third gainer among the top 200 cryptos by market cap. This spike brought weekly gains to over 45% at press time.
Previous RaveDAO analysis on AMBCrypto noted that cryptocurrency trading followed a long-term trend reversal pattern. Today, he seems to have freed himself from the model that he struggled to break at the time.
Can these bulls stay longer and break above $0.65?
Main drivers of crypto RAVE
Several factors, including holder growth, spurred the day’s rise. Over the past week, it has been trending upward, reaching a high of 45.75K to 45.88K. The increase indicates that more traders are betting on crypto.
Source: CoinMarketCap
In addition, the attention was there. The altcoin features in Coinbase Spot and Binance Futures top gainer charts. This meant that the piece was not only trending in the United States, but also around the world.
Its token trading volume also jumped 300%, reaching $75 million according to CoinMarketCap data. With everything pointing north, does the current breakout confirm a change in trend?
Is the RAVE breakout a confirmation of a change in trend?
On the charts, RaveDAO’s token broke free from a huge inverted heads and shoulders pattern and rose above $0.50. The $0.40 neckline had not yet been retested; therefore, there was a possibility of such a revisit. The recent movement of the candlesticks showed this.
However, some might argue that the breakout is too strong. This could have confirmed a change in trend. Usually, the market tends to retest, but not all the time.
Buyers were in complete control and full momentum, as shown by the Awesome Oscillator (AO). Additionally, the Choppiness Index (CHOP), which was at 37 at the time of writing, confirmed the clarity of the trend. When CHOP is below 40, it signals unidirectional movement.
Source: RAVE/USDT on TradingView
By managing to hold above $0.50, this meant that there was a possibility of rebounding towards $0.60 and beyond $0.65. Otherwise, the RAVE crypto could revisit the $0.40 area for a retest, and a breakdown below would consider the current move a counterfeit.
Why should you be cautious?
Despite the dynamic nature of liquidity, much of it was forming on the downside, not above. Data showed that over the past two days, while short positions were cleared, long orders accumulated below $0.48.
The clusters further supported the earlier idea of a possible retest. Indeed, liquidity below $0.48 could pull the price in a way that triggers long orders, giving it the power to rise above $0.60. Long positions were densely clustered between $0.41 and $0.48.
Source: CoinGlass
The few less dense shorts were between $0.53 and $0.56, indicating that the current rally may end at this level. However, this was not a guarantee, as the price may exceed this figure.
Final summary
- RAVE crypto is up 29% amid growth in holders, volume, and attention.
- RAVE price was facing downside risk as a large amount of liquidity formed below $0.48.
