ETHGas [GWEI] It seems that the economy is finally gaining traction after months of unrelenting selling.
Over the last 24 hours the token price rose 12%, its biggest recovery since it broke below its all-time lowest on July 21st.
Although one rally day does not indicate a trend change, the improved activity on both Spot and Derivatives Markets suggests that buyers are returning.
The rebound has been bolstered by an increase in the market’s participation.
GWEI traders return to action
The network’s volume of trading had reached $13,15 million at the time this article was written. This network recorded a 218% increase in daily trading volume.
A surge in activity indicates renewed interest following a prolonged period of subdued activities. In similar situations in the past, higher volume trading often lends credence to price movements because it indicates more participants on the market are backing the trend.
This could also be applied to GWEI.
Derivatives are also growing in popularity.
GWEI’s open interest has increased alongside the recent price rise, and the funding rates have been above 0 over the last seven days.
The two indicators combined suggest that traders are opting to open new long positions rather than simply cover shorts. It does not necessarily mean that the rally is going to continue but indicates an improvement in sentiment following several weeks of bullish pressure.
This test will be conducted at $0.032.
The technical side of things is improving.
GWEI is now attempting to stabilise the market after weeks of heavy selling.
While the trend in general has not yet reversed, momentum indicators show a gradual shift to the bulls. Next, watch $0.032, where prior selling pressure has created a significant resistance zone.
If the price were to rise above this level, it would be a positive sign for the recovery and encourage more buyers into the market. If it is not cleared, this could lead to another round of profits after the recent rebound.
Currently, there are more early signs of a recovery than a breakout.
Overall, the stronger trading volume and rising open interest, as well as improving funding rates, all indicate that confidence has returned. If buyers are able to carry momentum past the next zone of resistance, this optimism could translate into a long-lasting rally.
Final Summary
- GWEI’s price has risen 12% during the last 24-hours, and trading volume is now $13,15 million.
- Rising open interest rates and favorable funding rates indicate that traders in derivatives are becoming more positive. In fact, $0.032 has emerged as the next major resistance level.
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Source: ambcrypto.com
