- TapSwap had a weak bearish outlook at press time despite the weekend volatility.
- The volume indicator has shown some promise, but the bulls will need to reverse this level to provide support.
Click Swap [TAPSWAP] There was a lot of volatility on Sunday, May 26. It rose from $0.0098 to $0.011, a 12.4% rise, within an hour, before falling to $0.00974 a few hours later.
This volatility is common among currencies with a small market cap without a large trading volume behind it. What is TapSwap’s short-term price prediction based on technical analysis?
Last week’s trend was worrying
Source: TapSwap/USD on GeckoTerminal
The price action on the 1-hour chart has shown a strong bearish bias over the past week. The price posted a series of lower highs after the $0.011 area flipped to resistance on May 22.
The RSI was also always below the neutral 50 level highlighting the bearish momentum in the past few days.
At the time of writing, TAPSWAP was falling towards the $0.0095 support area highlighted by the red box. The OBV index has declined over the past four days, indicating increased selling pressure.
However, the CMF contradicted this result and pulled down TapSwap’s price forecast.
A CMF reading of +0.3 indicates significant capital inflows into the market and means that buyers were in control. The dissonance between volume indicators has been a concern for traders.
The ADX indicator showed a strong advancing trend with a reading of 40.
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With Bitcoin [BTC] After making a breakout beyond the local resistance at $67K last week, sentiment across the market could see TAPSWAP rebound in the coming days.
In conclusion, TapSwap price prediction is that a bounce from $0.0095 support is likely to depend on price action.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
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