BTC price continues to drop below $25,700, while several altcoins continue their rallies, surpassing 20%. Due to the lack of volume, we have started to see these types of price movements regularly. Speculative traders are using the weakened order books to trigger abnormal price movements.
On August 30, 2021, the price exceeded $26, experiencing a drop of about 97% in bear markets. At the time of writing this article, it is finding buyers at $0.79. The rise that started on September 2 gained momentum today. The price, which was at $0.41 four days ago, increased by 113% at its peak yesterday. To continue the upward trend in the short term, there are a few conditions that need to be met.
First of all, there must be continued closings above the levels of $0.77 and $0.72. Additionally, there is a need to overcome the resistance at $0.87, which has been tested yesterday and today. If the bulls succeed, we may see the price testing the targets of $0.93 and $1. The next target for Perp Coin will likely be $1.3, which was the peak in February.
The rise that started yesterday morning triggered an accelerated rally from $2.5. The Forth Coin price seemed to have turned back from its peak of $4.15 in the last 4-hour candle. However, if it can make closings above $3.6, we may see that the price has surpassed this resistance. If the $3.2 and $3 regions are lost, there may be a drop back to $2.74. The price is finding buyers at $3.5 at the time of writing. Investors who evaluate today’s rally have made a profit of approximately 50%.
Despite its 10-fold increase, the volume is only around $51 million. This supports the speculative rise narrative at the beginning of the article. Weakening order books are causing the price to move in double digits with a few million dollars in purchases. 61% of the volume comes from Binance exchange, so monitoring the exchange flows and adjusting stop zones seems important from now on.
It is wise for investors to be cautious about both altcoins. Let’s remember how CYBER Coin surprised us just a few days ago. The current state of the markets shows us that such massive demand increases are speculative. While many major altcoins are heading towards historical lows, it should be surprising to see these types of cryptocurrencies experiencing triple-digit increases on a weekly basis.