The cryptocurrency Moons (MOON) price has increased massively since July 16 but has seemingly hit a roadblock after reaching a new all-time high.
The MOON token is associated with the r/CryptoCurrency community on Reddit’s social media platform, which boasts 6.5 million members. MOON is earned by participating in the community. Then, the token is used to purchase premium features in the subreddit or tip other users for helpful posts.
The price has been on a tear since July 16, increasing by 425%. It is possible that the increase occurred as a result of Reddit’s decision to phase out Reddit coins.
Cryptocurrency Moons Price Skyrockets to New All-Time High
The MOON price has increased since June 14. The price created a higher low on July 16 and accelerated its rate of increase afterward. Since then, the price has increased by 425%.
On July 19, MOON reached a new all-time high price of $0.65. However, it has decreased slightly since. It is trading at $0.54 at the time of writing.
Read More: Best Crypto Sign-Up Bonuses in 2023
The $0.54 area is crucial since it is the 1.61 external Fib retracement of the previous drop. According to the Fibonacci retracement levels theory, following a significant price change in one direction, the price is expected to partially return to a previous price level before continuing in the same direction.
Additionally, when the price reaches a new all-time high, external Fib retracements are used to determine the next resistance levels. So, whether the price breaks out above the area or gets rejected could determine the future trend.
The daily RSI is still bullish. The indicator is above 50 and increasing, both signs of a bullish trend. However, the current reading of 95 shows extremely overbought conditions that could lead to a short-term reversal. So, the future trend’s direction depends on the lower timeframes.
Read More: Best Upcoming Airdrops in 2023
MOON Price Could Begin to Retrace
The short-term hourly chart suggests that the MOON price will likely retrace before eventually resuming its increase. The main reason for this is the massive bearish divergence (green line) that has developed in the RSI since the increase began on July 16.
A bearish divergence occurs when a momentum decrease accompanies a price increase. It often precedes significant downward movements. So, it is possible that the same will happen to MOON.
If the price retraces, the closest support levels will be at $0.43 and $0.37, respectively. These are both horizontal and Fib support levels. Due to this confluence, they will likely provide a bounce if the price increases. Afterward, the increase can continue toward the all-time high price of $0.65.
However, despite this bearish short-term MOON price prediction, increasing above the previous all-time high of $0.65 will mean that the trend is bullish.
In that case, MOON can move to the next resistance at $0.85.
More From BeInCrypto: 9 Best AI Crypto Trading Bots to Maximize Your Profits
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
