STABLE surges 9% as momentum flips bullish: Can bulls target $0.04?

Stable [$STABLE] has closed at higher highs for two consecutive days. The altcoin successfully held $0.033, then jumped to a weekly high of $0.037.

As of this writing, $STABLE traded at $0.36, up 9.2% on the daily charts. Over the same period, its trading volume jumped 22% to $17 million, indicating growing market activity.

$STABLE momentum indicators flush bullish

With the price, the altcoin’s upside momentum strengthened significantly. In fact, based on the momentum indicators, the altcoin’s Relative Strength Index (RSI) formed a bullish crossover, touching 54.

When the RSI edges into the bullish zone, it suggests buyers have jumped into the market and are in control. Often, buyer dominance has signaled improved market sentiment and tended to strengthen upside momentum.

Source: TradingView

Even more so, the +DI on the ADX DI indicators made a bullish crossover. The indicator rose to 17, while the negative dropped to 16, further confirming this shift in momentum.

Taken together, these two indicators signal the strength of the trend and confirm the likelihood of its continuation. If market conditions hold, $STABLE is likely to make further gains and flip $0.040 resistance.

What’s driving the altcoin’s upside?

$STABLE exhibited strengthening upside momentum as buyers stepped in to defend key levels. Interestingly, demand for derivatives has been significantly strong, as traders have rushed to take positions.

As the market signaled a rebound, demand for derivative positions surged. According to Coinglass data, the altcoin’s Open Interest rose 8.3% to $29.3 million.

Source: Coinglass

At the same time, the Derivatives Volume jumped 40% to $16 million. With OI and volume rising in tandem, it indicated increased participation and capital flow.

Moreover, $STABLE’s Perpetual Buy Volume rose to 24.7 million while the Sell Volume also rose to 23.7 million. With the buy volume exceeding the sell volume, this suggested that more positions were opened than closed.

Source: Coinalyze

Thus, traders deployed significant capital into either short or long positions. Meanwhile, the Long Short Ratio rose to 1.02, with traders on Binance as the ratio on the exchange exceeded 2.

A ratio at such high levels suggested that traders were overly bullish and placed aggressive bets anticipating more gains.

While the growing speculation causes short-term pumps, it also raises liquidation risk for leveraged positions. Thus, if the momentum fades and causes longs to be liquidated, $STABLE could drop again towards $0.030

Final Summary

• Stable surged 9%, successfully defended $0.033, and touched a weekly high of $0.037.
• $STABLE’s upside momentum strengthened as speculative demand returned to the market, with bulls eyeing $0.04.

Source