In the last 30 days, SuperVerse [SUPER] has surged by 60%, in line with the overall market uptrend, resulting in an impressive market capitalization of $1 billion acquired within just a month.
Recent movements indicate that buyers are currently driving the asset towards unprecedented highs. Nevertheless, the sustainability of this momentum amidst potential market challenges remains uncertain.
Pattern of Decline and Rally: What Lies Ahead for SUPER?
Looking at the chart, it is highly probable that SUPER’s upward trajectory might momentarily halt as it looks for a crucial support level where a sufficient influx of buy orders could reignite the upsurge.
The Fibonacci retracement tool has identified the 0.382 level, located at $1.83, as the nearest support region, representing a potential decline of 18.14% from the recent peak before a rebound takes place.
However, there is a chance that the drop could extend further to the 0.5 retracement level at the $1.70 price range before a renewed upward movement.
Analysis conducted by CryptoCrypto highlighted a key factor that may contribute to a probable short-term pullback in SUPER’s price.
Downward Pressure on SuperVerse Crypto
Data from Coinglass indicates that on December 8th, SUPER experienced its highest daily Exchange Netflow since its inception, with $3.93 million worth of the asset being added to cryptocurrency exchanges.
Exchange Netflow measures the variation between the inflow and outflow of an asset on exchanges. A positive Netflow signifies escalated selling activity as assets are transferred to exchanges for liquidation.
Conversely, a negative Netflow implies that holders are withdrawing assets from exchanges, suggesting a commitment to long-term holding.
For SUPER, the Netflow is concurrently high and positive, indicating noteworthy selling activity. This escalated selling pressure has led to a decrease in demand, resulting in diminishing prices.
Support levels, as depicted on the chart, could be identified at the 0.382 Fibonacci retracement ($1.83) or potentially the 0.5 retracement level ($1.70).
Market Continues to Display Strong Bullish Sentiment
The current market sentiment points towards a robust bullish outlook for SUPER, backed by critical metrics within this range.
Presently, Open Interest—an indicator monitoring the total number of outstanding futures contracts—has surged by 9.81% to reach $41.46 million.
This upturn signifies an increase in buyers entering the market with long positions, potentially propelling the asset to climb higher from its present levels.
Furthermore, short liquidations have surpassed long liquidations, with $296.48K shorts being closed in the past 24 hours. While this situation injects some downward pressure into the market, it ultimately favors buyers.
Given these circumstances, there seems to be a bias in the market towards long positions. If this trend persists, SUPER could surpass its recent highs.