BUILDon [B] has seen one of the major declines in the past day, with the asset plummeting 14% in the early hours of the day and bringing its cumulative 90-day performance to around 50%.
The asset is now trading at a key support level within a descending channel, which could be instrumental in determining whether it sees a rebound or, in fact, rallies even higher.
The price could rebound because the current support level sits within a demand zone that recently pushed B higher. If this demand holds, the market could continue trading upward, with its closest ceiling being the descending resistance line.
The rebound, however, may not happen immediately, especially when accounting for the fact that the demand zone extends even lower. There is a possibility that the price could drop further into this demand zone and consolidate before seeing a rebound.
In a very bullish scenario, the asset could breach the upper resistance level and trade even higher, with the next target being $18.9.
What should traders expect?
The indicator chart analysis shows that there has been significant distribution of the asset over the past few days, as recorded by the Accumulation/Distribution indicator.
The A/D is a volume-weighted indicator that shows high selling volume for B in the market, as demand remains very weak and supply continues to grow. At the time of writing, 972 million B has been distributed, with the indicator still pointing downward.
This means that the price is still likely to extend lower, as the Bull Bear Power, an indicator that tracks whether bulls or bears are in control, shows that the latter remains in control.
With the bears in control, there is still a high chance that more selling could occur.
The dominance of the bears and the ongoing distribution mean that the price is likely to swing lower, potentially falling below the present support level and deep into the demand zone on the chart.
Structural buys remain
There has been an observable pattern in the market, with buying pressure growing over the past 10 days.
B remains bearish, but strong spot market buying could support a rally, with roughly $138,000 worth of B accumulated over the past three days. To put this into context, the majority of these purchases came within the past day, with $71,500 recorded.
Buying at this scale while the price is declining implies that investors in the market remain convinced about the asset’s performance. They anticipate a possible rebound and view the decline as an opportunity to buy at a discount.
This trend has continued to support buying over the past 10 days. Continued buying in this case would support the bullish case, aid the market’s recovery, and potentially prevent the decline from extending much further below its present level.
Final Summary
- BUILDON is holding a key demand zone that could support a rebound toward the descending resistance.
- Bearish indicators remain dominant, but sustained spot accumulation could help B defend its current support and recover.