Moonbeam Looks Oversold: Is This Pullback Legit Or A Trap?

• 1 Moonbeam token price touched the 20-day EMA mark and gained momentum.
• 2 The technical indicators suggest that the rebound may extend ahead.

The Moonbeam token (GLMR) price was trading inside a falling wedge pattern and rose from its lower trendline support of $0.1800. 

This week, GLMR pulled back and spiked over 30%, revealing that investors had bought the dips and accumulated the token.

Meanwhile, the token is still trying to overtake the 20-day EMA mark to stretch the bullish wave, but signs of rejection were noted. 

A short covering move may be seen once the token succeeds in climbing above it. Meanwhile, if it fails to do so, the selloff may extend, and the token will breach its primary support zone of $0.1700, which might retest $0.1500 ahead.

At press time, GLMR was trading at $0.2191 with an intraday gain of 6.24%, reflecting a rebound on the chart. It has a monthly return ratio of -29.30% and -24.20% yearly, reflecting a downtrend.

The pair of GLMR/BTC is at 0.00000354 BTC, and the market cap is $191.96 Million. Analysts are bearish and suggest that the GLMR may deliver volatile moves ahead and continue dragging the gains ahead.

Moonbeam (GLMR) Revived From its 52-Week Low, What’s Next?

This week, GLMR settled around its 52-week low mark of $0.1600 and witnessed a notable rebound of over 25%. However, the sellers were looking confident and tried to push the token below the trendline support to extend the fall.

The price action revealed the lower top and lower bottom swings and was trading below the significant moving averages. The $0.2600 mark is the prompt resistance, while $0.1600 is the prompt support level.

Source: Santiment

For weeks, the sentiment was negative, and pullbacks were converted into a sell trade, which led to a sharp distribution of over 58% in the past two months.

Amidst the token soaring from its oversold trajectory, its long-term projections still looked negative. Meanwhile, the short-term projections favor the buy-on-dips, which might fuel the recovery.

In terms of market cap, the token was ranked at 244 and has a total supply value of 1.12 billion. 

Weighted Sentiment and Price Volatility Data Outlook

Amidst the consistent downtrend, the weighted sentiment data revealed a positive outlook, noted a surge of over 34%, and approached the positive region.

Source: Santiment

Likewise, the price volatility data witnessed a spike of over 22%, displaying a speculative move in the past hours.

@DyorNetCrypto, in his tweet, said that GLMR crypto was in a downtrend and continued to erode its gains. Recently, it formed a bullish engulfing candlestick and justified the pullback.

Source: X

Similarly, @JavonMarks mentioned in his tweet that GLMR looks good and is ready to climb higher in the next sessions.

Source: X

The immediate support levels for GLMR are $1.80 and $1.30, whereas the key upside hurdle is around $2.40, followed by $3.

The Moonbeam (GLMR) token price retested the 20-day EMA mark and displayed a rebound of over 25% this week. If the token stretches the bullish wave above the $0.2600 mark, it will lead to a trend reversal ahead.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.