After a prolonged period of sideways movement on the charts, SIREN finally broke out and rallied to a new all-time high of $0.36. Shortly after hitting these levels, it noted a sharp pullback too though.
At the time of writing, Siren [SIREN] was trading at $0.26 – Up 174.2% on the daily charts, on the back of its 241% weekly gains. Over the same period, the memecoin’s trading volume hiked by 3294% to $42 million, with its market capitalization exceeding $200 million.
With the altcoin’s volume and market cap rising in tandem, a hike in network activity and significant capital flows is evident.
SIREN buyers step into the market with conviction
In light of strained market conditions, many traders have reduced their exposure to altcoins and are holding funds, awaiting favorable conditions.
Despite the prevailing sentiment though, some cryptos have indeed attracted market attention. SIREN is the latest beneficiary of this market craze as traders, including whales, entered the market and aggressively accumulated the memecoin.
According to Nansen, over the last three days alone, whales aggressively accumulated across the board, with top holders adding 700 million SIREN tokens.
Source: Nansen
More importantly, these addresses sold only 65 million tokens. As a result, the Balance Change metric was positive above 600 million at press time – A clear sign of the cohort’s aggressive accumulation.
Additionally, the Buy-Sell pressure flipped positive. The Buy & Sell Volume to Price Pressure metric indicated a shift in power dynamics with buyer dominance climbing too.
Source: Tradingview
While the buy pressure rose to 13, the sell pressure fell to 6 to give a positive net pressure reading of 7. A positive net pressure is usually indicative of buyers taking total control of the market.
Risk appetite hits record high!
As SIREN rallied, investors entered the Futures market and followed the trend. According to Coinglass, the Open Interest rose by 402% to $51 million while derivatives volume jumped by 12418% to $1.62 billion.
A surge in volume alongside the OI hinted at a hike in participation in the Futures market, either taking long or short positions.
Source: Coinglass
Meanwhile, the Long/Short Ratio climbed above 1 to 1.05, with Binance Top Traders mostly taking long positions. A ratio at these levels implied that most investors were bullish and placed bets anticipating further gains.
Is the upside sustainable?
SIREN rallied primarily due to renewed demand, with buyers stepping in across the Spot and Futures markets. As a result, its Relative Strength Index (RSI) jumped to 88, then dropped to 86.
At the same time, the memecoin crossed both the 20.50-, 100-, and 200-day EMAs, reflecting strong upside momentum.
However, the minor drop in RSI did allude to the presence of sellers in the market. In fact, some traders did take the opportunity to cash out too.
Source: Tradingview
For instance, OnchainSchool observed that one holder offloaded $2.6 million in SIREN tokens, posing a significant threat to the upside potential.
If buyers maintain demand, the memecoin could recoup the losses incurred during profit realization and reclaim the $0.3-level. However, if speculators in the Futures market panic and close positions, SIREN is likely to drop to $0.11.
Final Thoughts
- SIREN surged to a new all-time high of $0.36 before a sharp drop to $0.26 at press time.
- Its rally was largely driven by speculative demand across the futures and spot markets.
Source: https://ambcrypto.com/sirens-174-surge-after-hitting-a-new-ath-is-downside-next-for-the-memecoin/
