Is This What Caused Today’s 50% Moonbeam (GLMR) Price Increase?
The Moonbeam (GLMR) price broke out from a 214-day descending resistance line on Monday. It has increased by 50% so far.
The price action and RSI both support the continuing of the increase towards the next closest resistance area.
What Led to 50% Moonbeam Price Increase?
The GLMR price increased sharply on Sept. 25, breaking out decisively from the line. At one point, the price had increased by 60%, reaching a high of $0.269. However, due to a subsequent fall and creation of a long upper wick, the GLMR price is now 50% above the daily low.
The daily RSI supports the continuing of the increase. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions, and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The indicator has moved above 50 (green icon) for the first time since the resistance line was in place. This is a sign of a bullish trend and suggests the increase will continue.
GLMR Price Prediction: Where to Next?
Since the price has broken out from a descending resistance line, it is likely that the previous downward movement has ended. Therefore, a significant increase is now likely.
The closest critical resistance area is at $0.36. The area is created by the 0.5 Fib retracement resistance level and is also a horizontal resistance area. An increase of 40% from the current price is required to reach it.
The 0.5 Fib level often acts as the top if the increase is corrective. Therefore, its reclaim will confirm that the GLMR price has begun a new bullish trend reversal.
Despite this bullish GLMR price prediction, failure to sustain the increase could cause a 30% drop to the $0.17 support area, negating all of today’s gains.
For BeInCrypto’s latest crypto market analysis, click here.