The post Analysts Give “Correction Warning” For Altcoin, Which Soared 1200 Percent In The Last One Month appeared on BitcoinEthereumNews.com.

Cryptocurrency analytics firm Alphractal has issued a cautionary statement regarding REEF, a major altcoin that has surged over 1,200% in just over 30 days. While the rapid rise brought gains to early investors, Alphractal now warns that REEF’s risk has increased and a market correction may be imminent. Alphractal highlighted several key risk factors in their analysis: Distance from Key Moving Averages: REEF is currently trading 200% above both its 200-day Moving Average (MA200) and 100-day Moving Average (MA100). The further an asset moves away from these metrics, the greater its risk, signaling a potential price correction, Alphractal noted. Long/Short Ratio: Historically, when REEF’s Long/Short Ratio became as negative as it is now, the altcoin tended to reach its price peaks. Alphractal suggests that market sentiment could soon change as traders return to long positions, which could impact current price dynamics. Derivatives Volume/Market Cap Ratio: The ratio is currently 162%, indicating significant interest in leveraged trades involving REEF. This ratio is a reliable measure of risk, analysts say, and signals increased volatility and a potential pullback. Funding Rate and MACD: REEF’s funding rate has turned positive again, while its Moving Average Convergence Divergence (MACD) has entered negative territory, both signals that usually signal a shift in market sentiment, according to the analytics firm. Given these indicators, Alphractal believes REEF may be entering a “pullback zone” as it searches for new buying demand. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/analysts-give-correction-warning-for-altcoin-which-soared-1200-percent-in-the-last-one-month/

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Filed under: News - @ October 9, 2024 11:20 pm