- Stader crypto maintained its bullish structure on the 4-hour chart.
- Short-term profit holders could contribute to SD’s decline below $1.
Stader [SD] crypto was in a steady downward trend in September and October. It suffered losses worth 47.5% from August 7 to November 2. Since then, Stader crypto has risen as much as 250.7% in six days.
At a high of $1.5, SD posted a gain of 414.1% in just over five days. The pullback over the past twelve hours has been part of a healthy uptrend, but how deep will this pullback go?
Stader about to fall below the $1 mark?
Source: SD/USD on TradingView
At the time of writing, both the $1.5 and $1 psychological round number levels were critical. $1.5 marked the local highs that Stader crypto had to overcome to resume the uptrend. The $1 support level was tested in the last few hours and showed a jump to $1.14.
This bounce suggested that buyers were active at $1 but may not be able to sustain it. After a triple-digit percentage move within a week, a deep retracement would only give investors an opportunity to re-enter the market.
A drop below $1 would turn the market structure bearish, but would also be a healthy outcome for the next rise. As things stand, the 4-hour chart’s technical structure and momentum were in bullish favor.
Profit taking will likely push Stader crypto south
On-chain statistics showed that the average coin age began to decline in the last week of September, more than a month before the SD rose above $1. This indicated a division as prices fell over the past two months.
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The price increase has not increased sales pressure, as evidenced by the lack of significant peaks in dormant circulation recently. However, short-term holders made huge gains, with an average gain of 58.6%.
This could lead to selling pressure that pushes Stader crypto prices below $1 and towards the moving average support levels of $0.75 and $0.55.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
Credit : ambcrypto.com
