crypto.news
CSPR surged over 100% on Monday as the altcoin saw increased demand from futures investors and traders amid a significant spike in volatility.
CSPR, the native token of blockchain platform Casper Network, rose to an intraday high of $0.026 on Nov. 18, its highest point recorded in the past 5 months, bringing its market cap to $250 million when writing.
CSPR’s price rally coincides with the market-wide bullish momentum driven by Bitcoin’s (BTC) recent all-time high of $93,477.11 on Nov. 13 before stabilizing above $91,000 at the time of writing.
This comes after months of decline, with the altcoin losing over 81% of its value since March due to security issues and fading community interest. However, on Nov. 16, it started hinting at a potential reversal.
CSPR has witnessed a significant uptick in futures open interest. According to data from CoinGlass, the open interest in CSPR’s futures market has skyrocketed by 101.51% over the past day, rising from $2.9 million to $5.9 million. A jump in open interest suggests increasing demand from traders.
Further, the weighted funding rate has shifted from a deeply negative zone of -0.0982% to a positive 0.1120%. A positive funding rate indicates that more traders are taking long positions, suggesting that the majority of market participants expect the asset’s price to rise.
Traders are paying a premium to maintain their long positions, which means they anticipate further price gains.
Further, CSPR’s daily trading volume has jumped over six-fold over the previous day, hovering over $471 million.
The significant gains observed on Monday pushed CSPR to the top gainer spot on CoinGecko while making it the 290th largest crypto asset by market cap. However, the token remains down 98.53% from its all-time high of $1.33 reached on May 12, 2021.
The crypto community appears bullish on CSPR, with CoinMarketCap’s social sentiment metric showing 92% of traders expecting short-term gains. Growing traction among investors has also pushed the altcoin to trend on Google.
CSPR could consolidate
However, technical indicators suggest CSPR could trade sideways for a while before resuming its rally.
On the 1-day CSPR/USDT price chart, the altcoin’s price was positioned above the upper Bollinger Band, indicating overbought conditions. Meanwhile, the Relative Strength Index, which peaked at 86 the previous day, had dropped to 74 at the time of writing, suggesting that buying pressure was easing.
However, the Moving Average Convergence Divergence indicator shows that the asset remains in a bullish phase, with both the MACD and signal line above 0 and the MACD line positioned well above the signal line. As such, CSPR could be consolidating in the short term before the broader uptrend resumes.
According to one analyst, the next resistance level for CSPR lies at $0.05, provided it successfully flips resistance at $0.025 into support. At press time, the altcoin was trading at $0.019.