Beam [BEAM], a cryptocurrency that prioritizes privacy, is facing a significant test as it nears a critical support level of $0.0202 on the daily chart.
The value of the asset has plummeted by more than 16% in under 48 hours, sparking worries among traders and investors regarding its immediate direction.
With Beam’s price on a downward trend, the stochastic RSI is nearing oversold territory at the current moment.
This could indicate a possible reversal in price, a short-term rebound, offering hope for those backing Beam.
Diminishing Whale and Trading Activity
According to analysis from CryptoCrypto using data from IntoTheBlock, most of the indicators are signaling a bearish sentiment. This decline is primarily driven by a 69% decrease in significant transactions within the past day.
This implies that prominent market players are adopting a cautious approach, closely monitoring how Beam responds to the $0.0202 support threshold.
The reduced involvement of large investors is also underscored by a 7% decline in active wallet addresses. This notable reduction in active addresses indicates a decrease in overall trading activity involving Beam on its network.
Liquidation Pool Likely to Exert More Downward Pressure on Price
Despite this, a sizable liquidation fund totaling 128.26K positioned at the $0.0203 price level is adding to the negative outlook for Beam.
This reserve aligns with the crucial support level at $0.0202, and breaching it could trigger additional downward pressure on the cryptocurrency’s value.
Future Prospects for Beam
The combination of weakening on-chain metrics and a bearish price trend paints a troubling picture of Beam’s short-term prospects.
Nevertheless, the stochastic RSI is offering some positive signals for the bulls, hinting at a potential price correction in the longer term.
The $0.0202 support level will play a vital role in determining the next price movement. A breach below this level might suggest a continued bearish phase, while a rebound could lay the groundwork for a possible bullish upswing.