Stable [STABLE] Two consecutive days have closed with higher highs. The altcoin was able to hold $0.033, and then jump up to a new weekly high of $0.057.
STABLE is currently trading at $0.36. This represents a 9.2% increase on the daily charts. The trading volume of STABLE increased 22% in the same period to $17million, showing a rising market.
STABLE momentum indicators flush bullish
Altcoins’ upward momentum has been boosted by the recent price increase. The Relative Strength Index of the altcoin reached 54 based on momentum indicators.
The RSI slipping into the positive zone indicates buyers in the market are taking control. The buyer’s dominance often signals improved market sentiment, and tends towards a stronger upward momentum.
In addition, the ADX DI +DI indicator also made a crossover. This indicator increased to 17 while the negative fell to 16..
These two indicators, when combined, confirm that the current trend is likely to continue. STABLE could continue to gain and break the $0.040 barrier if market conditions remain stable.
What is driving altcoins’ price increase?
STABLE displayed a stronger upward trend as buyers entered to defend important levels. The demand for derivatives is surprisingly strong as traders rush to place positions.
Demand for derivatives positions soared as the market began to show signs of a recovery. Coinglass data shows that the Open Interest of altcoins rose by 8.3%, to $29.3 millions.
The volume of derivatives also increased by 40%, to reach $16 millions. OI, volume and investment both increased in parallel. This indicated an increase of participation and capital.
STABLE’s Perpetual Sell Volume increased from 23.7 to 24.7 millions. The fact that the buy volume was greater than the sell volume suggested more positions had been opened.
The traders invested significant amounts of capital either in short or long positions. Binance’s Long Short Ratio jumped to 1.02 with Binance trading as the ratio exceeded 2.
The high ratio suggests that the traders are overconfident and have placed bets aggressively in anticipation of more profits.
The growing speculation can cause short-term pumping, but it increases the risk of liquidation for leveraged positions. STABLE’s price could fall to $0.030 if momentum fades.
Final summary
- Stable grew 9% and reached a new weekly high at $0.037.
- STABLE gained momentum as bulls aimed for $0.04, and speculative interest returned to the stock market.
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Source: ambcrypto.com
