Key Takeaways
- BLAST’s price surged 15% from its all-time low, breaking out of a falling wedge pattern.
- Despite a negative funding rate, BLAST’s price increase suggests bears are losing ground.
- Indicators like rising MFI and RSI on the daily chart indicate increasing buying pressure.
BLAST, the native token of the Ethereum layer-2 project Blast, has recovered after hitting an all-time low on Wednesday, July 2.
Over the past day, BLAST’s price has increased by 15%, defying the weight of a recent token unlock. Despite the recovery, the altcoin still remains down 99% from its all-time high of over one year ago.
Traders might want to know whether this rebound will be the start of an extended rally. In this analysis, CCN reveals if BLAST will continue to rise.
BLAST Bounces Back
BLAST has bounced back on the 4-hour chart, climbing to $0.0023 after breaking out of a falling wedge pattern that began forming on June 11.
During that downtrend, the token slid from $0.0028 to a new all-time low of $0.0019, largely driven by weak demand and a major token unlock; more than 10 billion BLAST were released into circulation just days ago, adding selling pressure.
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That trend now appears to be reversing. Technical indicators show bulls gaining the upper hand, with the Bull Bear Power (BBP) flipping into positive territory.
If momentum holds and bearish pressure stays muted, BLAST could move toward the next resistance level, $0.0026.
Still, the rally is fragile. Bulls need to defend support of nearly $0.0020 to keep the recovery alive. A failure to do so could stall any further upside.
Bulls Over Bears
From an on-chain point of view, Santiment data shows that the funding rate has turned extremely negative, indicating the presence of dominant short positions.
However, despite the bearish sentiment among traders, BLAST’s price has increased. This indicates that traders with short positions are not getting rewarded for their positions.
Hence, this is potentially bullish for the altcoin. If sustained, it could help BLAST’s market value trade higher in the short term and breeze past the $0.0026 resistance.
BLAST Price Analysis: Turning Point to Remain
Like the 4-hour chart, analysis of the daily chart shows that BLAST has also formed a falling wedge. However, in this case, the BLAST’s price is yet to break above the upper trendline.
The Money Flow Index (MFI) has risen, indicating increasing buying pressure. If this trend continues, the token’s market value could break above $0.0041.
In addition, the Relative Strength Index (RSI) has also climbed, indicating strong bullish momentum. Should this remain the same, BLAST’s price could climb to $0.0059 at the 0.618 golden ratio.
Meanwhile, if selling pressure increases, this forecast might not be validated. In that scenario, BLAST might slide below the wedge’s lower trendline and retest a new all-time low.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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