CSPR breaks out of multi-month downtrend after 100% rally

CSPR rose over 100% on Monday as the altcoin surged in demand from futures investors and traders due to a significant increase in volatility.

CSPR, the native token of blockchain platform Casper Network, rose to an intraday high of $0.026 on November 18. This was the highest point in the last 5 months and the market capitalization reached $250 million at the time of writing.

CSPR’s price rise coincides with the market-wide bullish momentum driven by Bitcoin (BTC) reaching its all-time high of $93,477.11 on November 13 and stabilizing above $91,000 at the time of writing.

This follows months of decline, with the altcoin losing more than 81% of its value since March due to security issues and declining interest from the community. However, on November 16, this situation began to signal a potential reversal.

CSPR has witnessed a significant increase in futures open interest. According to data from CoinGlass, open positions in CSPR’s futures market skyrocketed by 101.51% in the past day, rising from $2.9 million to $5.9 million. The increase in open positions indicates increased demand from traders.

Additionally, the weighted funding rate shifted from the deep negative territory of -0.0982% to the positive territory of 0.1120%. A positive funding rate indicates more investors are taking long positions; This shows that the majority of market participants expect the price of the asset to increase.

Investors pay a premium to maintain their long positions, which means they expect further price increases.

In addition, CSPR’s daily trading volume increased sixfold compared to the previous day, reaching over $471 million.

The significant gains observed on Monday pushed CSPR into the top gainer position on CoinGecko, making it the 290th largest crypto asset by market cap. However, the token remained 98.53% below its all-time high of $1.33, reached on May 12, 2021.

The crypto community seems optimistic about CSPR, and CoinMarketCap’s social sentiment metric shows 92% of investors expect short-term gains. The increasing interest among investors also made the altcoin trend on Google.

CSPR may get stronger

However, technical indicators suggest that CSPR may move sideways for a while before resuming its rally.

On the 1-day CSPR/USDT price chart, the altcoin price is positioned above the upper Bollinger Band, indicating overbought conditions. Meanwhile, the Relative Strength Index, which peaked at 86 the previous day, had fallen to 74 at the time of writing, indicating that buying pressure had eased.

CSPR price, Bollinger Bands and RSI chart — November 18 | Source: crypto.news

However, the Moving Average Convergence Divergence indicator shows that the asset remains in the bullish phase, with both the MACD and the signal line positioned above 0 and the MACD line well above the signal line. Therefore, CSPR may consolidate in the short term before a broader uptrend resumes.

CSPR MACD chart — November 18 | Source: crypto.news

The next resistance level for CSPR will be $0.05, provided it successfully converts the $0.025 resistance into support. At the time of writing, the altcoin was trading at $0.019.