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Amid the turnaround in the market in recent sessions, few cryptocurrencies are still struggling to take decisive recovery moves. BEAM price rose nearly 25% in the recent sessions, recovering over 50% of the losses.
It indicated the buyer’s comeback. At press time, Beam exchanged hands for close to $0.014, recording an impressive 7.2% rise in intraday today.
However, few have recovered more than 50% of their losses. Bitcoin is back above the $60K mark, indicating improved investor sentiment.
Let’s analyze it in a detailed way and try to correlate to find a clear direction for Beam out of it.
Beam Price DAA Divergence Indicator Shows Weakness.
Beam bounced sharply in recent sessions. However, analysts noted a bearish divergence in on-chain metrics: price DAA divergence indicator.
This indicator analyzes if any divergence is formed between the asset price and daily active address.
The daily active addresses highlight the unique number of addresses that have taken part in the transaction in a given period. As per the data obtained from Santiment, a drop in the number of 24-hour active addresses was observed.
BEAM bounced sharply despite a drop in the number of 24-hour active addresses in recent sessions. Thus, it created a bearish divergence.
The formation of a bearish divergence indicated the possibility of a price drop if the 24-hour active addresses remained flat.
Will Beam Price Continue to Recover or Fail?
The trend analysis highlighted a prevailing bearish trend with a bounce-back in recent sessions. Beam price hovered below the 50 and 200-day EMAs, indicating weakness on the chart.
However, if the recovery prevails in the upcoming sessions, BEAM may continue to recover. Additionally, the bulls might look to reclaim their territory above the $0.02 level.
Unless BEAM sustains below the $0.02 supply level, the possibility of a selloff at the higher levels is high.
When writing, the MACD and signal lines were placed below the zero line, indicating a prevailing bearish trend. However, both the lines were converging, indicating a recovery.
BEAM rose nearly 25% recently, recovering over 50% of its losses. At the time of writing, it was trading around $0.014 with a 7.2% intraday increase.
Despite this, there has been a bearish divergence in on-chain metrics. Specifically, the price DAA divergence indicator suggested a potential price drop if the number of daily active addresses declines.
The trend analysis showed a bearish trend, with BEAM below the 50 and 200-day EMAs.
However, if recovery continues, Beam could rise above $0.02. The MACD and signal lines are below zero, indicating a bearish trend, but their convergence suggests a possible recovery.