DIMO cryptocurrency surges 82% in one day, but faces significant challenge ahead

DIMO crypto gains 82% in a day before pullback

DIMO [DIMO] was undergoing a period of consolidation on the longer timeframes. Within the last 24 hours, it experienced a significant spike of approximately 82%, soaring from $0.122 to $0.227. However, the price has retraced to $0.163 in the most recent hours.

This pullback marked a 28% drop from the recent peaks, resulting in the breach of the $0.18 support level. The question now remains whether the bulls will regain control and drive prices back above this threshold to continue the upward trend.

Recent Rejection from Peak Levels

At the current moment, DIMO cryptocurrency has retreated by 28% from its recent high of $0.227. The RSI on the 12-hour chart briefly entered the overbought region, reaching 78.75 before declining.

The CMF indicates a value of -0.06 and has stayed below -0.05 for a significant portion of October, signaling prevalent selling pressure, which aligns with the price action of the past two months.

The sudden surge witnessed recently was an anomaly, as DIMO had been trading within a range since June. In the usual scenario, a move from the range’s lower end at $0.123 to the upper end at $0.232 typically takes weeks, as observed back in July.

This rapid movement within a day suggests an overextension of the market.

Nevertheless, the bulls will aim to reclaim the mid-range level at $0.18 as a support zone and consolidate there before initiating the next significant move.

Promising Development for Long-Term DIMO Crypto Investors

In 2024, the token demonstrated a substantial development score. While the activity was notably lower compared to May 2024, it has maintained stability since July, offering a positive sign for long-term investors.

Despite the ongoing consolidation phase, the consistent activity behind the scenes implies that an immediate breakout of DIMO beyond the range highs might not be on the horizon. Investors may consider a potential buying opportunity upon a breakout and retest of the $0.23 level.

Disclaimer: The information provided should not be considered as financial, investment, trading, or any other form of advice and represents the writer’s personal opinion.

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