Constellation [DAG] crypto cools after 20% surge in 24 hours – What’s next?

Constellation [DAG], a blockchain platform that prides itself on revolutionizing scalability, experienced a significant 20% increase on November 18th.

This surge propelled DAG to reach a peak not seen in five months, hitting $0.05, a critical level of support turned resistance during the second half of the year.

As of the latest update, the robust buying momentum observed earlier in the week appeared to be tapering off, evident from the extended upper wick on the candlestick chart. So, what could be the next move for DAG?

What Could be the Future Trajectory for DAG’s Price?

An analysis of the daily price charts indicates signs of exhaustion among buyers, highlighted by a modest rejection at the Q1 2024 support threshold of $0.05. This level had previously acted as a formidable barrier during the price recovery in May.

In the event of a repetition of similar circumstances in November, DAG might retrace towards $0.04 or $0.035, crucial support levels that alleviated the price decline in May.

However, with potential room for a price upsurge, as indicated by the On-Balance Volume (OBV), DAG could aim to break through the $0.05 obstacle or even surpass it.

Should this occur, prospective latecomers may consider re-entering the market at the mentioned levels, with their sights set on either the $0.05 hurdle or the upper resistance mark at $0.07.

These two targets could potentially result in gains of 35% and 77% respectively, should DAG achieve its bullish objectives.

Noteworthy Spike in DAG’s Network Activity

The recent price rally was accompanied by a notable surge in network activity. The number of active addresses nearly doubled, albeit remaining relatively small (around 20 addresses).

Interestingly, there was a slight uptick in new addresses, which then subsided (depicted by the blue line), indicating that the DAG rally did not attract a substantial influx of FOMO-driven users.

This limited engagement from the market could pose a challenge for a robust surge beyond the $0.05 mark.

In summary, the buyers’ exhaustion in DAG might reinforce the $0.05 hurdle, yet a possible pullback may present buying opportunities for latecomers seeking to capitalize on potential gains moving forward.