Over the span of two weeks, Secret (SCRT) experienced a remarkable price rally of more than 200%, characterized by a series of positive price movements from November 5 to November 17.
Breaking through the significant resistance level at $0.23, which had been acting as a barrier for almost three months, the altcoin encountered its first major obstacle as it struggled to surpass the $0.35 threshold after briefly reaching a seven-month high.
Currently, SCRT is being traded at $0.34, exhibiting a decrease of more than 32% in the past 24 hours, indicating a diminishing bullish momentum.
Is the Momentum Sustained by SCRT Buyers?
The most recent price action of the altcoin emphasizes the significance of EMA levels in determining SCRT’s short-term direction. Presently, SCRT is positioned above its 20-day, 50-day, and 200-day EMAs, suggesting a robust bullish trend. Nevertheless, the $0.42 resistance level led to a short-term downtrend in the charts.
If SCRT manages to close above the $0.357 resistance (proximate to the 200-day EMA), it might pave the way for testing the range between $0.42 and $0.55. Additionally, the golden cross formed by the 20-day EMA crossing above the 200-day EMA could further bolster a bullish resurgence.
On the contrary, a drop below $0.29 could indicate the conclusion of the bullish upswing, pushing the price back towards the $0.23 support level. This scenario could potentially result in prolonged consolidation. The short-term EMA levels are crucial support zones that buyers need to protect to prevent a more substantial retracement.
The RSI (Relative Strength Index) recently reached 83 before retracting to 68, indicating a waning bullish momentum after being in overbought territory. Despite the RSI’s moving average still residing above the 50 threshold, buyers could retain a slight advantage in the market.
Analysis of SCRT Derivatives Data
The trading volume witnessed a surge of over 217.34% alongside the 24-hour losses, signaling a significant bearish movement within the past day. However, the Open Interest experienced a sharp decline of 28.93%, implying that many traders may have closed their positions amidst heightened volatility.
With a 24-hour long/short ratio of 0.9631, there is no clear dominance between the bulls and bears. Nonetheless, Binance’s SCRT/USDT ratio reveals a more optimistic sentiment at 1.2, with leading traders positioning themselves in a bullish manner.
Traders should monitor the RSI and derivatives data for early indications of the forthcoming market movement. A rebound from $0.29 could lead to another upsurge towards $0.42, while a breakdown below $0.29 might necessitate a shift towards defensive trading strategies.