RaveDAO [RAVE] completed a breakout from a prolonged consolidation range after bouncing to a monthly high of $0.369.
At press time, RAVE was trading around $0.363, marking a 16.25% increase on the daily charts. With the price hike, altcoin flipped both the 20 and 50-day EMAs, indicating strong upside pressure.
Over the same period, the altcoin’s trading volume climbed 147% to $13.7 million, reflecting strong market activity and capital circulation.
What’s driving RaveDAO’s rally?
Notably, RAVE’s rebound was largely driven by speculators. RAVE saw explosive speculative demand over the past day.
In fact, according to CoinGlass data, the derivatives volume rose by over 211% to $83 million while Open interest (OI) surged 21% to $32 million as of writing.
The rising OI and volume indicated increased market participation and steady capital inflow. As such, these funds flowed into opening new positions.
Notably, the Long/Short Ratio jumped above four on Binance. When traders open mostly long positions, it implies they are bullish and anticipate continued uptrend. Historically, strong speculative activity has preceded strong price moves to the upside in the short term.
Spot sentiment also flips
On the spot side, buyers are also re-entering the market. As RaveDAO jumped to $0.36 on the 8th of August, buyers on the spot returned with strength.
As a result, the Buy vs Sell Volume rose to 3.4 million while the buy volume rose to 2.3 million, with the delta rising to 200k.
This trend has held on August 9th, as buyers continued to displace sellers. The altcoin’s buy volume rose to 773k m while the sell volume dropped to 714k, leaving a positive delta of 58k.
Can the upside momentum hold?
With RaveDAO seeing renewed demand, the altcoin’s upside momentum has strengthened substantially. In fact, the altcoin’s Relative Strength Index (RSI) has held on an upward trajectory, hiking to 64 at press time.
The rising RSI validates our earlier observation regarding rising demand, with buyers retaking the market. Often, such a market setup has preceded some more gains.
If demand can hold, RAVE will breach the $0.40 resistance, with $0.48 as the next level. However, if the speculation fades, which mostly happens, the altcoin will drop again towards $0.28.
Final Summary
- RaveDAO surged 16%, breaking out of a prolonged consolidation range, hitting a six-week high of $0.369.
- RAVE showed strong upside momentum, largely driven by speculative demand, but if this fades, a drop below $0.3 will follow.
