Numeraire (NMR) jumped nearly 95% from yesterday. Technical analysts are forecasting higher increases with short-term correction indications still there. A breach of resistance at $18.53 could trigger another massive jump.
Currently Numeraire in trading at $16.30, reflecting 97% increase within previous 24-hours, as per CoinMarketCap. The project currently has a market cap of $119.7 million and has become one of the most discussed altcoins of the day.
Numeraire shows strong technical signals
NMR on the 1-hour chart has been higher, and the previous closing price was at $16.67. The upward movement suggests buyers are increasing their interest, and the token can continue rising if momentum are sustained.
Even short-term moving averages confirm strength. The 9 EMA has climbed from $15.99 to $16.49, and the 20 EMA has climbed from $14.34 to $15.16 on recent days. That means short-term momentum is higher with respect to long-term movement, generally an indication that prices will keep climbing.
Despite the upward momentum, not everything is pointing straight up. There is a slight negative divergence building on the momentum-measuring MACD, as the line of the MACD line sits below that of the signal line. That would imply there potentially will be a near-term slowdown ahead. But the longer-term trend still has an upward bias, and on the whole, everything seems fine.
Numeraire has strong areas of support at $14.66, $9.28, and $9.15. Since NMR now comfortably trades above these regions, it suggests buyers are holding firm. On the upper side, strong resistance lies at $18.53. A breakout from this price level could initiate another rally, which could witness new highs in the near future.
Numeraire derivatives record massive volume surge
Numeraire derivatives have experienced an explosive surge in volumes. Recent statistics show that the volume has jumped by 16,467.94%, reaching an astounding $4.67B. Open interest has also jumped by 1,325.38%, currently at $114.88M, which suggests heavily one-sided trading on the market.
The sudden spike observed from volume and open interest suggests a sudden influx of participation that has likely been driven by speculation and higher volatility of NMR’s price action. On the contrary, the OI-Weighted funding rate displays a more conservative picture. The reading at 0.5466% as of now means that shorts are currently dominant compared to longs.
It indicates many speculators are anticipating declines and also suggests there are potentially selling pressures taking place irrespective of the record increase in volumes. If this imbalance continues, it could lead to sharper price swings as funding pressures weigh on market participants.
