During September and October, Stader [SD] cryptocurrency experienced a consistent downward trend, resulting in a 47.5% decrease from August 7th to November 2nd. However, in the following six days, Stader crypto managed to surge by a remarkable 250.7%.
Reaching a peak of $1.5, SD demonstrated an impressive 414.1% increase in just over five days. Despite a recent pullback in the last 12 hours, which is considered part of a healthy upward trend, the extent of this retracement remains uncertain.
Is Stader Likely to Dip Below $1?
Currently, the price levels of $1.5 and $1 stand as crucial psychological thresholds for Stader. The $1.5 mark acted as the recent local highs that needed to be surpassed for Stader crypto to continue its upward trajectory. Testing the $1 support level in recent hours, the price rebounded to $1.14.
While the bounce from $1 implies buyer activity at this level, the sustainability of this support is in question. After seeing substantial gains within a short period, a significant retracement could provide an opportunity for investors to re-engage in the market.
A drop below $1 could signal a bearish shift in market sentiment, yet it could also pave the way for a healthier price surge moving forward. Presently, the technical outlook on the 4-hour chart and momentum support a bullish scenario.
Potential Profit-Taking Could Drive Stader Crypto Prices Downward
On-chain data indicates that the average coin age began declining in late September, over a month before SD surpassed $1, indicating distribution while prices slumped over the past months.
Despite the surge in prices, there has been no significant increase in selling pressure, as evident from the absence of notable spikes in dormant circulation. However, short-term holders have accrued substantial profits, averaging at 58.6% gains.
This could result in selling pressure pushing Stader crypto prices below $1 towards the moving average support levels around $0.75 and $0.55.
Disclaimer: The above information is not intended as financial, investment, trading, or any form of advice and represents solely the author’s perspective.