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Serum aims in bringing decentralized speed and low transaction cost into the decentralized finance space. Serum is designed around DEX, which is a fully on-chain limit order matching mechanism. Serum aims to resolve these traditional problems of DeFi, as well as issues of centralization, low capital efficiency, and liquidity segmentation. Let us look at the technical analysis of SRM.
Past Performance
On October 18, 2021, SRM opened at $7.18. On October $7.49, 2021, SRM closed at $7.49. Thus, in the past week, the SRM price has increased approximately by 4.18%. In the last 24 hours, SRM has traded between $7.25-$7.72.
https://www.tradingview.com/x/y1hLP2zF/
SRM Technical Analysis
At the time of writing, SRM is trading at $7.65. The price is down by 1% (approximately) from the opening price. Thus, indicating selling pressure in the market, and forming a bearish candle for the day.
However, SRM is forming a really narrow range on the daily chart, a breakout on either side will give us a better outlook. We have to closely watch the demand zone (current level) and see if the price tests and breaks the long-term support level or not. If the price breaks and sustains below the support level of $6.73, a bear trend will be confirmed.
On the daily chart, the MACD and signal have entered below the zero range. However, we can see a bullish crossover by the Signal line over the MACD line. The price might rise after testing a support level.
The RSI on the daily chart is taking support from the 46% mark. A bounce from this level is highly possible. Moreover, it has been forming a bullish divergence. Therefore, the SRM price is expected to further rise.
SRM is trading above the Fibonacci pivot support level of $6.92, which has acted as a strong support level. We can expect the price to hold at this pivot level, however, if the buying pressure remains the same, the price might break out from the level and rise. Here, an opportunity for a long position arises.
Day-Ahead and Tomorrow
Traders can enter into the long trade, once the SRM price breaks $8.09, by keeping the take-profit target at $8.64 and stop-loss at $6.19.
If the price breaks down from the current support level, then it will highlight the next support level at $5.57. Thereafter, traders can go short from this level, while keeping the stop-loss at $6.92.