Over the festive period, Turbo crypto witnessed a notable 25% rise, commonly referred to as a ‘Santa rally’, which notably boosted AI tokens and NFT sectors by approximately 8% and 5% respectively.
Being an AI memecoin, Turbo crypto experienced a positive impact from the increasing interest in the sector. Its daily trading volume skyrocketed to $370 million, marking an impressive surge of 200%.
This surge helped the token recover almost half of the losses it had incurred in December. The question now arises: Can this recovery be sustained and extended further?
Challenges Ahead for Turbo Crypto
After facing a correction in October that eventually reversed at the lower end of the range, Turbo crypto encountered a similar pattern with a dump in December. Presently, the token is positioned at the mid-range level.
If historical patterns are anything to go by, Turbo crypto may consolidate around the mid-range before striving to reach the high-end of the range at $0.014. If this scenario unfolds, opportunistic buyers might consider accumulating at this level, anticipating a potential gain of around 30%.
Nevertheless, this projection could be invalidated if the price decisively drops below the 50-day Moving Average. The 12-hour chart’s Relative Strength Index (RSI) indicates a possibility of further growth before Turbo enters a state of overvaluation.
However, the Chaikin Money Flow (CMF) currently remains below the median level, indicating that capital inflows are insufficient to drive the recovery momentum forward.
Majority of Turbo Crypto Holders in Profit
Presently, a significant 85% of Turbo crypto holders find themselves in a profitable position, which may lead to profit-taking if the price lingers for an extended period around the mid-range.
Observations from leveraged short positions accumulating at $0.012, as highlighted by the liquidation heatmap, indicate that Futures traders are leaning towards shorting the memecoin slightly above the mid-range level.
Unless there is a significant short squeeze that propels Turbo towards the upper channel, the token risks a downturn towards the 50-day Moving Average or even the lower levels if it stays stagnant around the mid-range.
Disclaimer: The views presented above do not constitute financial, investment, or trading advice – they solely reflect the writer’s opinion.