The cryptocurrency market has been somewhat stagnant in recent days, as major cryptocurrencies recorded minimal price fluctuations. However, while large-cap cryptocurrencies struggle to raise their prices, FUNToken chose a different path. Notably, in just the last seven days, the price of FUN recorded an impressive increase of 189%. While this growth might give the impression that some days of low activity are approaching, the reality could be different. Therefore, let's analyze in more detail what FUNToken is doing.
After this enormous three-digit growth last week, the price of FUNToken is now at $0.0098, raising its market capitalization to over $107 million. Thanks to this, the price of FUN is close to its main resistance of $0.01. Over the last two days, the token has attempted to break through that barrier. Although it has not yet happened, the situation could change quickly in favor of FUN. In fact, a key technical indicator suggested that the odds of the FUNToken price surpassing $0.01 are high. The MACD technical indicator showed a clear bullish advantage in the market, which could soon translate into a continuous price increase.
However, since the cryptocurrency market is known for its unpredictability, price movements cannot be anticipated with complete certainty. For example, the Relative Strength Index (RSI) recorded a reading of 85.4, indicating that FUNToken was in overbought territory. Because of this, investors may sell their assets to take profits, which could negatively affect the token's price.
On-chain data shows that investors may have started selling their assets. According to Santiment, a data analytics platform, the supply of FUNToken on exchange platforms has slightly increased, while the supply off them has decreased. This means that selling pressure is high, which often results in price drops.
However, the growth of the FUN network has increased significantly, suggesting that more new addresses were used to transfer the token. Data from Coinglass confirmed another optimistic metric. The long/short position ratio of FUNToken remained high during the 12-hour period, indicating that there are more long positions than short ones in the market.
Therefore, if the bullish momentum continues, it would not be surprising for the price of FUNToken to surpass $0.01 and reach new highs. However, if the bears dominate, its price could first plummet to its support near $0.006 before regaining bullish momentum.
Conclusion: Will the price of FUNToken remain bullish?
The price of FUNToken shows strong bullish signals, with key indicators and metrics pointing to a continued bullish momentum. While the $0.01 resistance represents a short-term challenge, sustained investor interest and network growth could drive new gains. Still, traders should be cautious, as overbought conditions could trigger a temporary correction.
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