- Orca saw a high-volume price surge that has investors and traders excited
- The price action from last year can serve as a reminder for the excited bulls about how rallies commence
Orca [ORCA] woke up and posted emphatic gains toward the end of the previous week. On the 19th and 20th of July, ORCA saw an 84.22% move higher from $1.49 to $2.745.
Investors would be keenly interested in the asset now that it has broken out of its downtrend. But is ORCA a good buying opportunity, or should holders use this pump to cash out?
Technical findings are positive
Source: ORCA/USDT on TradingView
Orca has been in a higher timeframe downtrend since February. This steady descent has been punctured by price gains that measured close to 70% in the latter halves of February and April. Thereafter, the downtrend had resumed.
There was reason to suspect this might be more of the same. The recent lower high that ORCA set at $1.91 on the 27th of June was convincingly pierced on a day with high trading volume — classic signs of a strong breakout.
The RSI and the OBV flashed bullish signals, but the $2.77 resistance has rebuffed the bulls.
A sudden increase in volume without accompanying news events of proportionate scale is likely not how the next uptrend would begin.
Orca crypto traders hear echoes of “It’s a trap!”
Source: Coinglass
The Open Interest was at $464k on the 20th of July. On the 21st, it soared to $4.24 million and was at $1.9 million at press time.
This showed speculators were hopeful of catching another move higher, but the bulls may be disappointed.
Zooming out on the price chart, AMBCrypto observed that the rally that began in October 2023 was preceded by a four-month price consolidation at the $0.8 support level.
Read Orca’s [ORCA] Price Prediction 2024-25
The rally started slowly, and as it reeled in more participants, it gathered strength.
That is how long-term rallies usually start. Orca has been in a long-term downtrend, and very likely needs to consolidate for months before it can have a convincing run higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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