AI-powered memecoin Siren [SIREN] has been making waves among crypto traders and investors with its bullish performances recently. It has seen extreme volatility over the past week after making steady gains since February.
The 3-day chart’s trend remained firmly bullish. The RSI was correcting from overbought levels, explaining the drawdown of the past few days. At the same time, the large upside candle wicks during some 3-day sessions have dragged the A/D indicator lower.
The drop-off in trading volume compared to February was striking, even more so because March saw SIREN make more gains. Any recovery would need a massive influx of trading volume and demand to sustain the next move higher.
In the short term, a deeper price drop appeared likely. The coin has tested the $0.78 local support and bounced higher but has yet to end the contraction it entered over the past week. Its descending triangle chart pattern will soon see a resolution.
SIREN to test the local support once again
The falling triangle pattern was a concern for the bulls. The $0.8 support zone has been tested multiple times in recent days. Meanwhile, each subsequent price bounce is shallower.
In other words, seller conviction remained high, and buyers were holding on. High volatility and low demand could see the $0.8 support zone breached, sending SIREN into a deeper correction.
A breakout beyond $2 is needed to convince swing traders to go long en masse.
Traders’ call to action – Wait
The liquidation heatmap warned of a potential liquidity sweep into the $2 area. This might look like a breakout, but it has a threat of reversing, especially if low demand conditions persist.
In this scenario, a drop to the $0.7 magnetic zone to hunt down long liquidations might commence in the coming days. Combined with the triangle pattern, a deeper price drop appears likely.
A true breakout and retest of $2, on high volume, is unlikely as things stand.
Final Summary
- SIREN was one of the only memecoins showing bullish strength in recent weeks.
- The descending triangle pattern was a warning to the bulls of a drop below the $0.8 local support.
