The MOON tokens launched by the creators of the r/Cryptocurrency subreddit on the popular social content platform Reddit, were designed as a tool to reward users for creating various content. The cryptocurrency was launched in May 2020 on the sabreddit r/Cryptocurrency, one of the largest and most active cryptocurrency online communities.
The cryptocurrency was launched in May 2020 on the r/Cryptocurrency sabreddit, one of the largest and most active cryptocurrency online communities.
The coin’s price has rallied 425% since July 16. The rise may have come as a result of Reddit’s recent decision to phase out support for non-tokenized Reddit coins and rewards.
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BeInCrypto’s editorial team previously revealed that nearly half of all of Reddit s users went on strike to protest changes to the site’s usage policy.
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The price of Moons has skyrocketed to the moon
According to technical analysis of the daily chart, the price of MOON has been rising since June 14. On July 16, the price set an ascending low, after which it accelerated its rate of increase. Since then, the token has risen 425% in value.
On July 19, MOON’s price hit a new all-time high of $0.65. Since then, however, it has declined slightly. At the time of writing, it was trading around $0.54.
The $0.54 area is crucial as it is the Fibo 1.61 level of the outer retracement of the previous decline. Fibonacci levels are traditionally considered the most likely springboards for stopping and reversing price after a significant advance in any one direction. As expected, they can determine the limit levels of a pullback and allow price to resume moving in the original direction.
When the price reaches a new all-time high, the outer Fibo retracement levels are also used to determine the next potential resistance levels.
In addition, when price reaches a new all-time high, the outer Fibo retracement levels are used to identify the following potential resistance levels. Thus, the further trend depends on whether the price breaks above this area or pulls back from it.
Source: TradingView
Daily RSI still remains bullish. The indicator is above the 50 mark and rising, which is a sign of an uptrend. However, the current value of 95 indicates a strong overbought condition, which could lead to a short-term reversal. Thus, the further direction of the future trend depends on the shorter timeframes.
MOON may start correction
The short-term hourly chart suggests that MOON price is likely to make a pullback and only then resume its rise. The main reason for this is the massive bearish RSI divergence (green line) that has formed since the price started rising on July 16.
Bearish divergence occurs when a price rise is accompanied by a decline in momentum. It often precedes significant downward movements. Therefore, it is possible that the same will happen with MOON.
If the price retreats, the nearest support levels will be at $0.43 and $0.37. These are both horizontal levels and Fibo support levels. Due to this confluence of supports, they are likely to provide a rebound in price. After that, the rise may continue towards the all-time high of $0.65.
Source: TradingView
Despite this bearish short-term outlook, however, a rise in MOON price above the all-time high of $0.65 would indicate that the trend is bullish. In that case, the token could move toward the next resistance at $0.85.