ASM cryptocurrency, the proprietary token of Assemble AI, a platform for global reward points and AI-driven news insights, experienced a notable surge on the 14th of October.
In just 24 hours, the token witnessed a remarkable increase of around 40%, riding on the overall market recovery fueled by Bitcoin’s climb to $64K.
However, as the upward trend faced resistance, the question arises: Can the bullish momentum continue?
Challenges Ahead for ASM Crypto
The market has seen a significant dominance of memecoins and AI-related assets, particularly during the Q4 rebound. Hence, the rapid growth of ASM crypto during this period is not entirely unexpected, given the speculative frenzy in the space.
Yet, signals from the daily charts indicate that the market may be overheated, with both the RSI and stochastic RSI entering the overbought zone. While this signals strong buying pressure, it also raises concerns about a potential price reversal.
If ASM manages to break through the resistance at $0.045, it could see a further 40% increase, aiming for $0.064. However, historical data suggests that the $0.045 level has acted as a barrier in the past, potentially leading to a price rejection if buyer interest wanes, with $0.03 as the next likely support level.
Intense Accumulation Trend since August
Starting from August, ASM has been witnessing a period of robust accumulation, as evident from the declining supply on exchanges (red) and the increasing supply off exchanges (yellow). This trend indicates a scarcity of supply on centralized exchanges as users shift their assets out.
While there has been a slight uptick in on-exchange supply recently, indicating increased selling pressure, a further surge in sell orders could disrupt the ongoing uptrend.
Furthermore, the significant unrealized profits seen among short and medium-term investors suggest a cautious sentiment. Investors holding the token for one and three months have seen unrealized gains of over 40% and nearly 70%, respectively, potentially prompting profit-taking activities.
The recent uptick in prices has moved short and medium-term holders into profitable positions, making the $0.045 level a critical point to monitor as it could determine the token’s future trajectory.