The trading volume of Cortex (CTXC) cryptocurrency experienced a significant surge even as its price took a substantial hit on the market. Notably, the spike in CTXC’s volume was four times higher than in previous weeks. This surge coincided with a sharp decline in price from a peak of around $1.05 to a low of approximately $0.37, marking a 45% decrease.
Historically, the $0.25 ‘orderblock’ for CTXC has served as both a support and resistance level. Currently, the price appears to be nearing this zone, which has prompted a slight bounce, indicating potential resistance against further downtrends.
Despite the bearish market sentiment, the increase in trading volume alongside the price drop suggests accumulation by traders foreseeing possible future value.
The MACD indicator indicates a nearing convergence and a potential bullish crossover, signaling the likelihood of an upward momentum shift. Should this reversal materialize, CTXC could potentially break out.
This points to a critical area for a potential rally if CTXC manages to stay above the $0.40 resistance level, setting the stage for a more substantial recovery.
Ensuring Profitability at the Break-Even Point
Address distribution analysis for CTXC based on their profitability concerning break-even prices revealed that 41.19% of addresses were in profit, having entered the market at $0.385250.
In contrast, 57.19% of addresses were at a loss, with price points ranging from $0.40 to above $0.50, where the highest losses were concentrated. Only 1.61% of addresses were at the break-even point, indicating minimal trading activity.
The future market trajectory of CTXC could revolve around these levels, as addresses in the red might opt to sell if the price nears their entry points, potentially limiting upward price movements.
Conversely, sustained upward trends could shift more addresses into profitability, fostering a bullish sentiment within the Cortex market.
CTCX’s Adoption Rate Trends
The new adoption rate of Cortex experienced a notable spike in May 2018, peaking at nearly 50%, aligning with a price peak of around $0.30. This trend illustrated how high adoption rates had previously driven price surges, albeit with diminishing impact over time.
Subsequent spikes in adoption during 2019 and 2020 exhibited a similar, though less pronounced, effect on prices. This indicated diminishing returns from surges in new adoption on the asset’s value.
By 2024, the adoption rate had stabilized around 8.97%, significantly lower than previous highs, with no discernible effect on prices as they steadied at approximately $0.80.
This pattern suggests that while initial adoption surges strongly influenced Cortex’s prices, this effect has diminished, possibly due to market maturation or decreased responsiveness to adoption rate changes.
If the adoption rate continues to rise, the diminishing correlation between new adoption rates and price movements indicates a potential decoupling of user growth from direct price incentives in the future.