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Cow rose by more than 23% in 24 hours as the volume followed. Yet mORTS Dan 70% of the traders were profitable, but is that enough to support the rally?
Cow protocol [COW] Has been on an upward trend last month. From the moment of the press, the COW had risen by 23% in the last 24 hours, while the volume reached $ 150 million.
More information from Mint market cap showed that the Dex volume of the cows that had surpassed from 1 inch [1INCH]. By combining this, price activity and liquidity offered some insights why the Altcoin was used up.
Will Cow defend his win?
The rise in the cow took its price to an important level at $ 0.46 when the price broke out of a bearish structure.
The structural shift was confirmed by the Trendline break, where the price was re -tested at $ 0.27. A second retest came to the same level, which led to a double bottom, which indicated the end of this correction.
With the level at $ 0.46 that is determined by equal highlights, a break above it could lead cow to $ 0.88, so that the door is opened to recover $ 1.
This rise was further supported by the rise in volume on balance (based on) despite the statistics in the negative zone. It is important that the BBV had risen from a low point from $ 738 million to -$ 91 million at the time of writing.
Source: TradingView
With the structure pointing to a bullish continuation, it is worth assessing the other side of the coin. Cow could visit $ 0.27 if the equal highlights yielded a subsequent price decrease.
As a result, the structure would still remain bullish. However, a break under $ 0.27 can make the bias invalid. Apart from the structure influence, what has the future of the cow even more specific and able to define?
Will the profit attract more companies?
More analysis using IntotheLock -Data showed that a large number of holders were in the money. Statistics showed that around 71% were in profit, while 29% had to do with losses, with the remaining on break-even.
Because more traders had a profit, it could lure these participants in more holding time to increase the profit.
Investigating the profitability data that have provided insights in important areas to focus on. The most important resistance zones were between $ 0.46 and $ 0.73 and $ 0.73- $ 1.55 where 55.77 m and 230.62 million were collected respectively.
On the hand, the support of important support zones were between $ 0.30 and $ 0.38, because more than 234 million cows were purchased.
The accumulation account was the key, because holders tend to take a profit or lower losses when the price in these zones is traded.
Can liquidity derail this increase?
Despite the expectation of more profit, liquidity could play a key role in denying this sentiment. According to the data from Coinglass, the lungs of 50x leverage was as the price was approaching $ 0.45.
In the meantime, shorts of equal size but with more volume built on this level. This indicated that derivatives traders were very short of the Altcoin, which could be a problem.
Source: Coinglass
Worth mentioning, Binance and Bybit controlled much of the trade of token. Bybit had the most volume, with cumulative short liquidation lever for both standing, at $ 2.90 million during the time.