Mask Network (MASK) price initiated a very sharp upward movement on Nov. 2 due to positive Binance news. Still, it has yet to clear its primary resistance at $3.65.
The world’s largest crypto exchange Binance announced that it would launch the Bluebird Index perpetual contracts with up to 25x leverage. The index will comprise Binance Coin (BNB), Dogecoin (DOGE), and Mask Network (MASK). It will be weighted based on volume and market cap and rebalanced each Thursday.
Currently, the weights are as follows:
- BNB – 51.8%
- DOGE – 41.9%
- MASK – 6.3%
While there hasn’t been a noticeable effect on the BNB price or DOGE price, the Mask Network price pumped nearly 70% right after the announcement. The sudden upswing took MASK price to a high of $4.48.
The recent pump was especially notable because the rest of the crypto market has been gradually bleeding. This possibly occurred as a result of the mixed performance of the Asia-Pacific stocks ahead of the FOMC meeting.
Mask Network Price Pumps But Fails to Clear Resistance
Mask Network price began going up on Oct. 26 and reached a high of $3.03 three days later. This amounted to an increase of nearly 200% in three days.
At the time, there was no positive crypto news that could precede the upward movement. Still, the MASK price began going up again on Nov. 2, leading to a higher high of $4.48.
Despite the upward trend, Mask Network price failed to break out from the $3.65 resistance area and created a long upper wick (red icon) instead.
The daily RSI does not show any signs of weakness yet. Regardless of being overbought, it has not generated any bearish divergence. This suggests that the MASK price will eventually be successful in moving above the $3.65 area.
If it does, the next resistance for Mask Network price would be at $6.40.
Short-Term Decrease Followed by Rally
The movement since the Oct. lows resembles a five-wave upward movement. In it, the MASK price is in the fifth and final wave, after which a retracement is expected.
Additionally, both the RSI and candlestick movements are showing bearish signs. The RSI has generated bearish divergence (green line), and there are several long upper wicks in place over the past 24 hours (red icons).
A retracement towards the 0.5-0.618 Fib retracement levels could occur. This support area is at $2.31-$2.72.
Alternatively, a daily close above the $3.65 area would indicate that the upward movement will continue toward the $6.40 resistance instead of a short-term correction for Mask Network price.
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