Over the past few weeks, DIA [DIA] has shown remarkable strength. With a market capitalization of $127 million, this digital asset has managed to hold steady during the cryptocurrency downturn that began in 2022, maintaining a stable position around the $0.35 support level since May 2022.
The recent breakthrough beyond the $0.81 and $1 marks marked a significant milestone. By surpassing the previous highs from March, the token’s breakout signaled the end of its consolidation phase during the bear market.
Potential for an Upward Price Surge Appears Promising
By analyzing the Fibonacci extension levels based on DIA crypto’s rally starting from August, it is evident that the momentum picked up rapidly towards the end of September. The token surged by 134% in just three days before experiencing a slight retracement.
Currently, the 23.6% extension level at $1.11 is being tested. There is a likelihood that the bulls supporting DIA will drive prices higher. However, in the case of a rejection, a price correction down to the $0.95-$1 range could present a buying opportunity.
The Relative Strength Index (RSI) indicates a strong bullish momentum, although the Chaikin Money Flow (CMF) stands at +0.02, suggesting positive but not significant buying pressure. Looking ahead, potential resistance levels lie at $1.37 and $1.64.
Short-term Optimism Shows a Surge
On the morning of October 17th, Open Interest stood at $3.4 million with DIA being traded at $0.79. Within six hours, the price soared to $1.12, accompanied by an Open Interest of $24 million. This sudden surge in Open Interest highlights a speculative frenzy surrounding the token.
Although the spot market experienced a substantial upward movement, the notable 24-hour surge in Open Interest suggests potential high volatility for the token. Both investors and traders are advised to proceed with caution and tighten risk management strategies.
Disclaimer: The views expressed in this article are solely the opinions of the writer and do not constitute financial, investment, trading, or any other form of advice.