Siren [SIREN] is on the verge of erasing all recent losses. The memecoin broke out of a descending channel, touching a local high of $2.26 before sharply dropping.
As of this writing, SIREN traded at $1.7, up 102% on the daily charts, adding to its 136% weekly rally.
Over the same period, trading volume climbed 392% to $209 million. Equally, M.C surged 111%, crossing the billion mark to $1.29 billion, reflecting increased capital flows.
Why is SIREN waking up again?
SIREN’s has faced extreme scrutiny, with large holders accused of market manipulation. EmberCN observed that market makers have consistently sold high and bought low, keeping the market in check.
With control over 93% of the circulating supply, these holders have resumed accumulation, pushing SIREN above $2.
In fact, Lookonchain reported aggressive accumulation from a mysterious wallet. This wallet has consistently purchased SIREN since it dropped to $0.13.
From the 5th of April, a group of wallets started withdrawing a large amount of Siren from Binance Alpha. Lookonchain noted that one wallet withdrew 31.55 million SIREN worth $64.67 million from Binance Alpha.
These token withdrawals have coincided with the memecoin’s price hike, suggesting the rally is largely driven by this demand.
Futures chase the rally as liquidation hits $6.4 million
After SIREN rallied and then dropped below $2, Futures market participants attempted to chase the rally. Others also tried to bet against the market.
According to CoinGlass data, Derivatives Volume rose 362% to $1.1 billion, while Open Interest rose 108% to $149 million. A jump in OI and volume indicated increased participation, with traders taking either short or long positions.
However, this heightened volatility affected both long and short sellers equally. CoinGlass data showed a sudden surge in liquidation, with total liquidation exceeding $6.4 million.
As such, longs worth $3.23 million were liquidated, while shorts worth $3.21 million were liquidated. The soaring liquidation suggests traders rushed into the market, and with volatility rising, they were all forced out.
Can the momentum hold?
SIREN rallied as whales started accumulating again. This whale demand strengthened upward momentum.
As a result, the memecoin’s Relative Strength Index (RSI) rose to 60, signaling buyer dominance. At the same time, the MACD also jumped to $0.11, validating the trend’s strength.
This showed that if these holders continue to accumulate, the uptrend will hold and reclaim $2.
However, if the behavior witnessed from these market players repeats and they sell high again, the memecoin will plummet below $1, with $0.5 as critical support.
Final Summary
- SIREN experienced extreme volatility, touching $2.26 before sharply dropping.
- The memecoin rallied, primarily driven by increased accumulation from large players who purchased 31.55 million SIREN worth $64.67 million.
