- Goatseus Maximus maintained its bullish structure and momentum for most of the past two weeks
- The volatility and an upward liquidation wave were likely due to short liquidations around $1.2
Goatseus Maximus [GOAT] was able to reach another all-time high at $1.25, while its market cap rose to almost $1.26 billion (there are one billion GOAT tokens in circulation). The token saw fresh gains heading into the weekend, with the crypto likely to head even higher based on the near-term liquidation chart.
GOAT rises past $1 and reaches $1.25
Source: GOAT/USD on TradingView
The market structure on the 4-hour chart was bullish and has been so since the first week of November. The memecoin saw its momentum stagnate around the $1 level in recent days, but saw a decisive breakout on Friday, November 15.
The RSI on the 4-hour chart has also been above the neutral 50 for the past two weeks. In addition to price causing higher highs and lower lows, the RSI reinforced the bullish picture for GOAT.
The OBV has also been steadily rising – another sign that bulls have been dominant. One of the concerns bulls might have was the decline in trading volume since November 11. Finally, trading volume was below average during this week’s trading.
Liquidation card indicates short-term profits
AMBCrypto found that there were a large number of short liquidation levels between $1.16 and $1.2. They outweighed the long liquidations which were between $1.146 and $1.05. This meant that a rise could be likely as the price is typically attracted to liquidity.
Realistic or not, here is GOAT’s market cap in BTC terms
Therefore, a move towards $1.2 seemed likely at the time of writing, but what could happen now? Well, the low trading volume indicated weakness among buyers.
The liquidation map highlighted the potential for a liquidation cascade to generate short-term profits. However, it also presented a chance that the price would reverse from $1.2 to $1.3 and drop towards $1.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.