Journalist
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Solana Mobile has launched a token for its second-generation Web3 smartphone, Seeker (SKR). The token performed relatively well, surpassing a market capitalization of $100 million.
This milestone led it to be among the top 200 cryptos by market capitalization. Over the past 24 hours, Seeker has led this category in terms of daily gains after surging more than 70%. The spike erased weekly losses and pushed gains to 48%.
But what is behind this sudden increase after a decline since the middle of this month?
What motivated the Seeker gathering?
Seeker reached this high due to an increase of over 429% in daily trading volume. The rise was the result of Upbit’s listing, which exposed Seeker to Korean traders and, as a whole, the Asian market.
The Upbit exchange will support three SKR trading pairs featuring Bitcoin (BTC), USDT and KRW as listed currencies. This has resulted in increased exposure to speculative trading for the Seeker cryptocurrency.
This high volume contradicts the decline in the crypto market. However, can the altcoin sustain high volume, or will it be another “pump and dump” scenario?
SKR price action breaks out
Charts show that the altcoin broke out of a downtrend channel, which kept the price limited for about 12 days. The price increased aggressively from $0.19 to over $0.26 in just an hour after launching on Upbit.
Cumulative volume delta (CVD), which notes the difference in buying and selling pressure, was bullish. At the time of writing, the CVD was at SKR 369 million, suggesting a massive purchase that would result.
This positive capital inflow into the Seeker crypto was evident in the Chaikin Money Flow (CMF), whose reading was 0.47. The indicator shows that the capital inflow began the day before, just before the listing.
Source: SKR/USDT on TradingView
Historically, most stock market quotes eventually retrace. That’s why it’s always worth securing profits, especially during sudden price changes like this.
However, widespread market profit-taking would prevent the recovery from continuing.
Trader Profit-Taking Risks Strengthen Sustainability
In addition to the usual declines after strong rebounds, profit-taking could also slow down the continuation of this movement. According to CoinGlass data, SKR traders flipped the Long/Short ratio to red just after the price hit $0.030.
The ratio has fallen from its daytime high of 1.43 to 0.84 at the time of writing. This meant traders were selling for fear of giving back their gains.
On the Binance Futures market, the Long/Short ratio fell as low as 0.58. This means that most of the profit-taking took place across the world, more so than in the Asian market, which fueled this rally.
Source: CoinGlass
Nonetheless, Seeker was down about 17% this month, indicating that traders are still suffering losses.
Final Summary
- Seeker rebounds 70% after Upbit quote and technical breakout.
- SKR price faced the risk of a rally pause as traders stepped up their profit-taking.
