Siren [SIREN] broke a key resistance level at $0.21, suggesting potential for further bullish movement despite a significant drop in trading volume. Technical indicators point to a strong trend, while on-chain data reveals a wallet profited over $8 million. However, derivatives traders are heavily betting against the rally with $1.37 million in short positions.
The cryptocurrency Siren [SIREN] broke its prolonged resistance, opening the door for a potential upside rally as the broader market recovers. At press time, SIREN was trading at $0.216, up 2.65% over 24 hours after reaching an intraday high of $0.249.
Market participation appeared lower as trading volume declined by 55% to $18.70 million. This falling volume suggests traders and investors are currently hesitant or fearful about participating.
On the daily chart, SIREN appeared bullish after breaking and closing above the key resistance level of $0.21. The asset previously broke out above the same resistance but failed to sustain the move, resulting in a significant decline.
If SIREN remains above $0.21, it has strong potential to rally 42% and reach $0.30 based on past performance. The asset’s bullish thesis would be invalidated only if the price falls below the $0.21 level.
The technical indicator Average Directional Index reached 56.90, well above the key threshold of 25. This indicates SIREN is in a strong directional trend despite recent price fluctuations.
SIREN has surged more than 115% over the past week, allowing many investors to make substantial profits. Crypto tracking platform Onchain Lens disclosed a newly created wallet withdrew 71.84 million SIREN tokens worth $6.54 million ten days ago.
That holding is now valued at approximately $15.52 million. This reflects an impressive profit of $8.98 million for the wallet.
Despite SIREN’s bullish momentum, derivatives analytics platform CoinGlass indicated intraday traders were maintaining a bearish outlook. Traders were overleveraged at $0.195 on the downside and $0.231 on the upside.
At these levels, they built approximately $476,000 worth of long-leveraged positions and $1.37 million worth of short-leveraged positions. These trader bets reflect a bearish outlook, suggesting they believe the SIREN price will not cross the $0.2313 level soon.
If the price does break above the $0.2313 level, the $1.37 million worth of short positions could be liquidated. The current price action hints that another 45% upside move could be on the horizon for SIREN.
