PolySwarm surges 62% in 5 days: Is NCT set for further gains?

Currently, PolySwarm [NCT] has broken through its four-month range highs, with high trading volume suggesting a strong likelihood of this upward movement being sustained. The daily trading session is ongoing, but the breakout signals potential further gains.

An analysis by CryptoCrypto delved into on-chain activity and price movements to identify potential bullish targets. It appears that the extended period of consolidation is coming to an end, paving the way for a new uptrend.

Is it Wise for Buyers to Wait for a Retest?

Typically, a breakout from a range is followed by a retest of previous highs, which then act as support. A positive response during such a retest in the days following the breakout could indicate a strong possibility of continued bullish momentum.

For NCT investors, watching for signs of this retest is crucial. While there is a chance that the breakout may continue without a retest, exercising patience could be beneficial for long-term investors.

Within a span of five days, the token has surged by 68%, while the RSI sits at 77, signaling overbought conditions.

Although a pullback is not guaranteed, investors might consider buying at $0.02 or $0.024 if the latter level is breached before NCT touches $0.02.

Key Fibonacci levels are likely to serve as significant resistance points on the upward journey. Breaking through each level could reinforce bullish sentiment and attract more trading volume to the rally.

Quiet Dormant Tokens Suggest Absence of Widespread Selling Pressure Yet

The 30-day MVRV stands at 37.38%, indicating that short-term holders are enjoying an average profit of 40%. Despite this, the metric for dormant tokens remains subdued.

This lack of activity hints that there has been no significant profit-taking so far.

However, with high MVRVs tending to reset towards zero, a wave of profit-taking may materialize in the near future. The mean coin age has exhibited a downward trend since August, pointing towards a distribution phase even prior to the breakout from the range.

Disclaimer: The views expressed herein do not constitute financial, investment, trading, or any other form of advice and represent solely the opinions of the writer.