OriginTrail [$TRAC] has continued to rally in the market, with a 15% gain, at press time. The rally follows a structural breakout from a descending resistance line on the chart, with the asset forming a new local high and reaching a level last seen around the 4th of June.
The breakout from this resistance level should typically lead the asset to form a high of $0.49, the starting point of the descending resistance line.
At the time of writing, the Moving Averages (MA) were about to form a bullish crossover on the chart. That’s when the 20 SMA trades above the 50 SMA on the chart, which historically tends to precede a rally.
In addition, there’s been a surge in the Balance of Power (BOP) indicator. The tool measures the relative strength of buyers and sellers to determine which side dominates the market.
When the reading is above 0, it often indicates that buyers have more strength, especially when it reads far above the 0 mark. At press time, $TRAC had a BOP reading of 0.35 on its daily timeframe chart, confirming that buyers are still very much active.
Notably, however, buyer strength compared to the 21st of August has declined by nearly half, as it peaked at 0.67. For now, there’s still a good chance that $TRAC maintains its bullish positioning and rallies in the near term.
Where the market stands
Market momentum remains heavily inclined toward supporting the buying outlook on the chart, based on volume analysis.
When volume rises alongside price, buyers typically remain active and continue positioning for further upside. Conversely, when volume is declining while price is up, it hints that there’s minimal buying backing the asset.
At press time, volume data on CoinMarketCap showed that $TRAC’s trading volume increased by 580% over the last 24 hours, with roughly $35 million worth of the asset traded.
If this continues, there’s a high chance that $TRAC makes a continued upward swing in price. In addition, $TRAC has gained mindshare as market participants mention the asset more frequently across social media.
Mindshare was up slightly by 1.37% as it reached 1,370 posts from several market participants. If there’s a growing surge in mindshare, especially as the price is rallying, it could possibly influence other traders in the market to buy into the asset.
Community sentiment is bullish
Community sentiment, which measures the relative strength of buyers and sellers based on market votes, shows a clear consensus that the market remains bullish.
The sentiment data, based on votes from 13,800 traders, shows that roughly 83% expect $TRAC to maintain its bullish momentum.
Notably, this remains a sentiment-based view, and traders could change their outlook before that shift is reflected in the sentiment indicators.
Final Summary
- $TRAC’s rally has pushed price above a key descending resistance line, while the 20 and 50 SMAs approach a bullish crossover.
- Rising volume and 83% bullish community sentiment support further upside, but weakening Balance of Power could limit momentum.