Moons (MOON) updated its all-time high, but hit the ceiling
Date: 2023-07-20 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The price of the Moons token (MOON) has risen significantly since July 16, but it seems that after updating the all-time high, it ran into a serious obstacle
Launched by the creators of the r/Cryptocurrency subreddit on the popular social content platform Reddit, MOON tokens were conceived as a tool to reward users for creating various content. The launch of the cryptocurrency took place in May 2020 on the basis of the r/Cryptocurrency subreddit, one of the largest and most active online cryptocurrency communities.
Since July 16, the price of the coin has staged a rally of 425%. Perhaps the growth came as a result of Reddit's recent decision to phase out support for non-tokenized coins and Reddit rewards.
The price of Moons soared to the moon
As the results of the technical analysis of the daily chart show, the price of MOON has been rising since June 14. On July 16, the price set an increasing low, after which it accelerated the growth rate. Since then, the token has risen in price by 425%.
On July 19, the price of MOON reached a new all-time high of $0.65. However, it has since declined slightly. At the time of writing, trading was around $0.54.
The $0.54 area is crucial, as the 1.61 Fibo level of the external correction of the previous fall passes here. Fibonacci levels are traditionally considered the most likely springboards for stopping and reversing the price after significant progress in any one direction. As expected, they can determine the maximum levels of price pullback and allow it to resume movement in the original direction.
In addition, when the price hits a new all-time high, the external Fibo retracement levels are used to identify the next potential resistance levels. Thus, the further trend depends on whether the price breaks above this area or rolls back from it.
The daily RSI is still bullish. The indicator is above the 50 mark and is rising, which is a sign of an uptrend. However, the current reading of 95 indicates a strong overbought, which could lead to a short-term reversal. Thus, the further direction of the future trend depends on shorter timeframes.
MOON may start a correction
The short-term hourly chart suggests that the price of MOON is likely to pull back and only then resume growth. The main reason for this is the massive bearish divergence on the RSI (green line), which has formed since the start of price growth on July 16.
Bearish divergence occurs when a rise in price is accompanied by a decrease in momentum. It often precedes significant downward movements. Therefore, it is possible that the same will happen with MOON.
If the price retreats, the nearest support levels will be at $0.43 and $0.37. These are both horizontal levels and Fibo support levels. Thanks to this confluence of supports, they are likely to provide a price rebound. After that, the growth may continue in the direction of the all-time high of $0,65
However, despite this bearish short-term outlook, a rise in the MOON price above the all-time high of $0.65 would mean that the trend is bullish. In this case, the token may move to the next resistance at $0.85.
