Over the course of November, the native token of the gaming-focused blockchain Vulcran Forged, known as PYR crypto, witnessed a significant surge in value, rising from $2.1 to $4.6. At present, the token is trading at $3.5, reflecting a notable 45% increase over the past 30 days.
Given the recent signs of buyer fatigue, the question arises: will PYR crypto undergo a period of consolidation or will it resume its upward trajectory?
Observing a Downturn in PYR Crypto’s Rally
The presence of elongated upper candlestick wicks often indicates a decrease in buyer enthusiasm, typically preceding phases of consolidation. PYR has closely followed this pattern, exhibiting a period of stability below the $4 mark in recent days.
If the ongoing bull market and altcoin momentum persist, PYR may consolidate further before embarking on another upward surge. Notably, the $4 level has acted as both a former Q2 support and resistance zone, and a clear move past this threshold could signal a resumption of the uptrend, potentially setting the stage for PYR to target the $5 and $6 levels.
Nevertheless, various technical indicators hint at a probable short-term peak. The Relative Strength Index (RSI) has reached overbought territory and commenced a downward trajectory, indicating a decline in buying pressure. Will it retrace towards the mid-level of 50 before another upward push?
Similarly, the On Balance Volume (OBV) has struggled to surpass its June highs, collectively suggesting that the price momentum of PYR may decelerate or retrace in the near future.
Increased Short Positions at the $4 Level
Currently, the $4 mark appears to serve as a significant resistance point in the short run. Data from Coinglass reveals a surge in leveraged short positions at $4, illustrated by prominent orange levels on the chart.
With limited liquidity available on the downside of the price action, any attempt to seek additional upside liquidity could force PYR to retest the $4 level or potentially trigger a short squeeze leading to further gains. However, a drop below $3.3 could complicate efforts to surpass the $4 threshold.
Disclaimer: The views expressed in this article are solely the author’s opinion and do not constitute financial, investment, or trading advice.