Examining if STABLE’s uptrend is sustainable after its latest 5% price hike

While the broader crypto market has shown significant weakness, STABLE has consistently held up. As the market crashed on 24th June, STABLE defended the $0.33-support and climbed to a local high of $0.365.

At the time of writing, STABLE was trading at around $0.362, up 5.5% over the past 24 hours in addition to its 7% weekly gains.

At the same time, the trading volume of the altcoin rose by 25% to $20.8 million, indicating an uptick in market participation.

Why is STABLE holding up?

STABLE’s daily charts underlined a strengthening bullish structure. The altcoin jumped above its 20 and 50-day EMAs at $0.349 and $0.344, respectively.

In doing so, the altcoin clearly sat above both its short and long-term moving averages, confirming the trend’s strength on the charts.

The Stochastic Momentum Index further validated these market conditions. The SMI indicator rose to 17, while its signal rose to 7. Although the SMI remained within the bearish zone, its upward trajectory reflected improving momentum and buyer presence.

The spot activity further confirmed this point of view. The altcoin’s Spot Netflow extended its stay in negative territory, holding there for seven consecutive days.

That’s not all though as over the last 24 hours, Spot Outflows rose to $527K while Inflows dropped to $365K. As a result, Netflow plunged 2617% to -$162K – A clear sign of sustained demand.

Therefore, it’s suitable to say that the altcoin has recently shown relative strength, largely driven by sustained spot demand.

Is the network’s sustainability of concern?

Although STABLE has been exhibiting some strength, demand-wise, the market did raise some concerns.

For starters, the network’s usage remains extremely weak. For instance, a look at STABLE’s Price DAA Divergence revealed that the metric has remained negative for 7 consecutive days.

A negative DAA Divergence means that Active Addresses have been failing and have not kept up with the price. User engagement often leads to weak network fundamentals, implying the uptrend lacks stronger user participation.

Historically, such structural weaknesses have extensively increased the risk of price correction.

Can the altcoin’s upside momentum hold?

STABLE exhibited relative strength, driven by strong market demand. With upside momentum holding up, the altcoin might be positioned for further gains too.

Therefore, under these conditions, STABLE will close above $0.36 and flip its $0.40-resistance.

However, as was observed, pullback risks remain due to structural weakness. If the bulls’ attempt fails and the price fails to close above $0.36, a retrace will follow.

Another pullback will see the altcoin drop below $0.34 and seek immediate support at $0.32.

Final Summary

• STABLE surged by 5% and successfully defended $0.33, hiking to a local high of $0.36 amid sustained demand.
• Altcoin remains structurally weak, with low user engagement posing a risk for another pullback towards $0.32.