Aethir's Price Correction After a 70% Surge: Is Further Downturn Ahead?

Aethir's price has seen a substantial correction following a remarkable 70% increase today, as smart money and prominent investors began taking profits. Currently, the DePIN token holds significant gains from earlier lows, but there are signs of a potential further pullback.

Key Takeaways

Aethir's price surged by 70% but is currently correcting to $0.042 after reaching a high of $0.051.
The token’s trading volume skyrocketed by 4,000%, with $388 million traded within the last 24 hours.
Smart money investors increased their holdings but subsequently reduced balances, indicating profit-taking behavior.
Aethir has formed a descending triangle on the daily chart, hinting at a possible bullish reversal if it remains above key support levels.

Aethir Price Analysis

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Aethir's price has recently undergone a correction after a remarkable rally of approximately 70%. This surge caught the attention of smart money and prominent investors, leading to profit-taking in the market.

As per data from crypto.news, Aethir reached a four-month high of $0.051 on the morning of September 9 in Asian time before correcting to $0.042 at the time of this report. Despite this pullback, the DePIN token remains 68% higher than its low in July, with a market capitalization of $484 million.

The explosive rally today occurred in a high-volume trading scenario, with trading volume for the token increasing by over 4,000% in just 24 hours. A total of $388 million worth of Aethir tokens changed hands among traders, demonstrating increased interest and activity.

Moreover, Aethir futures open interest saw a 55% rise during this same period, reaching an all-time high of $101.7 million. A long/short ratio exceeding 1 indicates that many futures traders are leaning bullish, anticipating further price appreciation in the near term.

The earlier surge in Aethir's price coincided with positive performance across the broader market, especially among DePIN tokens like Bittensor and Arweave. These assets benefitted from optimism regarding the upcoming Federal Reserve meeting, where recent macroeconomic data suggests an increased likelihood of a 50-basis-point rate cut, potentially the first in months.

Investor interest has been rekindled as smart money purchases increased from 19.68 million to 28.4 million ATH tokens earlier in the day, as reported by Nansen. However, despite this resurgence in buying, smart money wallets have seen their balances drop by 37.6% to 12.26 million within a 24-hour period.

Additionally, the quantities held by public figures were reported to have fallen by 63% in the same time frame. A sharp decline in wallet balances like this typically indicates profit-taking, a common practice in the market after a strong rally. Such sell-offs by prominent investors may foster bearish sentiment among retail investors, likely influencing their buying decisions and increasing the risk of further price corrections for Aethir in the short term.

Examining the daily price chart, Aethir appears to be forming a multi-year descending triangle pattern. It broke through the upper trendline yesterday, signaling a possible bullish reversal by invalidating the previous bearish setup. Momentum indicators reflect this hopeful outlook, with MACD lines trending upwards and expanding green histogram bars signaling growing buying pressure. Additionally, the Relative Strength Index has retreated to 67 after entering overbought territory briefly, suggesting the potential for additional price growth.

The next target for Aethir seems to be $0.050, coinciding with the 38.2% Fibonacci retracement level. A decisive break above this level could lead to further bullish momentum, with price projections possibly extending to $0.098, representing a 133% increase from current levels.

However, if Aethir’s price were to drop below the critical support level of $0.040, this could invalidate the bullish scenario and suggest a shift in market dynamics.

Disclosure: This article is intended for informational purposes only and does not constitute investment advice.