Rapid Surges: COTI Soars 118% in a Week, Polygon Meme Coin Spikes 24% in a Day

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Source: CoinFactiva.com

The price of COTI has surged by 118% over the past week, reaching $0.2202 as of 3:30 a.m. EST.

However, in the last 24 hours, the price has experienced a nearly 5% drop, accompanied by a 31% decrease in trading volume. This suggests a shift in interest away from COTI.

Looking back, the surge in COTI’s price followed its listing on BlueBit exchange, where the COTI token was introduced to the spot market paired with the Tether (USDT) stablecoin.

The sudden surge took traders by surprise, leaving investors who missed out on the rally feeling regretful.

However, perpetual traders may find numerous entry opportunities to short the COTI price, given that investors are already capitalizing on the gains accumulated throughout the week.

Traders considering a long position on the COTI price still have an opportunity, albeit with continued high risk. Both viewpoints will be examined and elaborated upon in the analysis section below.

With the Relative Strength Index (RSI) currently at 90, COTI is significantly overbought. However, the upward trajectory persists, increasing the likelihood of further gains. According to Welles Wilder, a renowned figure in technical analysis, an asset is considered overbought and poised for selling when the RSI is about to dip below 70.

Furthermore, the Spent Output Profit Ratio (SOPR) for COTI suggests that a correction may not be imminent. At 0.91, based on a 30-day moving average, the SOPR remains below 1. This indicates that COTI holders with unrealized profits are not yet showing signs of selling their positions from the gains made over the past week.

Given these indicators, a pullback in the near term seems unlikely. Investors may want to refrain from premature profit-taking as COTI could potentially see further appreciation. It might be prudent to wait for the SOPR to rise above 1 before considering shorting the market.

The Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO) indicators also support this outlook. The MACD is currently above its signal line, with green histogram bars indicating significant positive momentum in the ongoing bullish cycle. Similar strength is observed in the histogram bars of the AO indicator.

Price Targets for COTI

With sustained buyer momentum, COTI may target a reclamation of its recent peak at $0.2497, recorded during Sunday’s intra-day high. In an extremely bullish scenario, the altcoin could surpass this level and aim for the significant milestone of $0.2500.

Contrary Scenario: However, there is also a converse scenario to consider. The elevated RSI position of the COTI price suggests a heightened risk of correction. Furthermore, breaching the upper band of the Bollinger indicator at $0.1966 further amplifies the likelihood of a downturn.

In the event that bears exert control, immediate support for the COTI price could falter around the 786% Fibonacci retracement level of $0.2055. Should this level give way, the next significant support lies at the 61.8% Fibonacci level, marked at $0.1708.

Failure to hold above this level may lead to a descent towards the market range’s midline, delineated by the 50% Fibonacci retracement level at $0.1464. To nullify the bullish outlook, COTI must breach both the 38.6% and 23.6% Fibonacci retracement levels at $0.1221 and $0.0919, respectively.

Given the potential for a correction in the COTI price, investors are closely monitoring Sponge V2, which analysts believe possesses substantial upside potential upon its launch on additional exchanges. Regarded as one of the premier web3 projects, it is being touted as a prime candidate for investment in the decentralized future.

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