LimeWire (LMWR) has recently gained significant attention following a substantial surge in the past few days. The digital currency witnessed a remarkable rise of over 200% since its rally on November 5, reaching a peak of approximately $0.32 on November 17. This surge propelled LMWR into a phase of price discovery after successfully breaking its long-established resistance.
Currently, LMWR is being traded at around $0.27, marking an increase of about 65% within the last 24 hours. During trading, the price repeatedly tested the resistance level of $0.3 but faced challenges in achieving a conclusive close above this threshold. Interestingly, the $0.3 resistance coincided with the 200-day EMA, forming a critical area for bulls to overcome.
Will buyers of LMWR be able to maintain the momentum, or will sellers regain dominance?
The recent surge witnessed LMWR surpassing the 20-day EMA ($0.151) and the 50-day EMA ($0.1545), with the currency now striving to maintain levels above these short-term supports. A bullish crossover of the 20-day EMA over the 50-day EMA could potentially set the stage for a more sustainable recovery, with eyes set on breaking the $0.36 resistance.
However, a failure to close above the $0.3 zone might result in a short-term correction, with immediate support situated at $0.2. At the current time, the RSI stands at approximately 81, indicating that LMWR has entered the overbought territory.
Hence, caution is advised for buyers as an RSI above 80 could signal a potential reversal if selling pressure intensifies.
It is essential to highlight that LMWR experienced a surge of over 260% in its 24-hour trading volumes, aligning with the 65% daily increase, reflecting a healthy upward trend. However, it is crucial for traders to monitor Bitcoin’s price movements closely, as overall market sentiment can impact the future trajectory of LMWR.
Analysis of MACD and Volume Profile
The MACD indicator recently turned positive, with the MACD line crossing above the signal line. The MACD line surged above the zero mark, while the signal line approached crossing the equilibrium point. A continued upward trend of these two lines would strengthen the short-term bullish trend depicted on LMWR charts.
Additionally, the Visible Volume Profile Range (VPVR) highlighted a significant buying zone between $0.15 and $0.21, which could serve as robust support during a potential pullback.
On the other hand, the volume profile indicated minimal resistance above $0.32, suggesting that a decisive breakthrough beyond this level could lead to rapid advancements towards $0.36 and beyond.