Short-term holders could take profits and cause Stader prices to plunge below $1.
- Stader crypto retained its bullish structure on the 4-hour chart. Short-term holders in profit could contribute to SD’s drop below $1 support.
Stader [SD] crypto had been in a steady downtrend in September and October. It sustained losses worth 47.5% from the 7th of August to the 2nd of November. Since then, Stader crypto has rallied a whopping 250.7% in six days.
At its peak at $1.5, SD had registered gains worth 414.1% in just over five days. The pullback of the past 12 hours was part of a healthy uptrend, but how deep will this pullback reach?
Stader set to decline below the $1 mark?
Source: SD/USD on TradingView
At press time, both the psychological round number levels of $1.5 and $1 were key. $1.5 formed the local highs that Stader crypto needed to overcome to resume its uptrend. The $1 support level was tested in recent hours and saw a bounce to $1.14.
This bounce suggested buyers were active at $1 but might not be able to hold on. After a triple-digit percentage move within a week, a deep retracement would only offer investors a chance to re-enter the market.
A pullback below $1 would flip the market structure bearishly, but would also be a healthy outcome for the next price move higher. As things stand, the technical structure on the 4-hour chart and the momentum were in bullish favor.
Profit-taking likely to push Stader crypto southward
Source: Santiment
On-chain metrics showed that the mean coin age began to trend downward in the final week of September, more than a month before SD rallied past $1. This signaled distribution as prices declined in the past two months.
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The price surge did not see increased selling pressure, evidenced by the lack of significant peaks on the dormant circulation recently. However, short-term holders were at an enormous profit, averaging 58.6% gains.
This could lead to selling pressure that pulls Stader crypto prices below $1 and toward the moving average support levels at $0.75 and $0.55.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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