Lombard Finance [BARD] is up 39%, coming second among the many highest each day gainers for the highest 200 cash. Its each day buying and selling quantity greater than tripled, reaching $278 million as the value surpassed the $1.50 mark.
Whereas the value motion continues to rise, danger can also be following in the identical course. On-chain information, alongside dealer behavioral shift, was exhibiting clear indicators of a possible bearish reversal.
Is BARD’s promote strain looming?
Wallets linked to the Lombard Finance venture confirmed huge motion of BARD tokens into crypto exchanges.
These wallets deposited BARD tokens price $824K, $266K, and $767K from their Gnosis Secure Proxy into Binance, HTX, and Bitget, respectively. Cumulatively, the crew had deposited greater than $1.85 million in BARD.
These deposits occurred as BARD hit a brand new peak, eliciting that the crew might be planning a sale. Now, the trade steadiness of the altcoin has reached a brand new all-time excessive (ATH) of about 93 million BARD, per Nansen AI.
Supply: Arkham
These tokens may be used to supply liquidity, therefore invalidating the narrative of the looming promote strain. Nevertheless, merchants wanted to remain cautious, as the true motive was but to be decided.
Worth motion reveals bearish divergence
In the meantime, the value motion was breaking above the earlier ATH of $1.50 following a consolidation that began in October.
This week, BARD efficiently retested the $1 zone following a breakout that occurred on the final day of February.
The MACD line at 0.109 indicated that short-term momentum was with the bulls, whereas the rising histogram bars affirmed its power. Nevertheless, worth motion has been declining because it reached $1.69.
Supply: BARD/USDT on TradingView
The declining worth motion steered potential retracement as merchants began to promote. This was supported by a bearish divergence as worth was rising whereas the Accumulation/Distribution indicator was declining.
The indicator was at adverse 291 million, indicating distribution had already began. This might imply that the altcoin was reversing, probably resulting from profit-taking or worry from a possible sell-off from the venture’s crew.
Lengthy/Quick Ratio drops sharply
The conduct of merchants was additionally shifting on the charts, per CoinGlass. The Lengthy/Quick Ratio on the hourly timeframe confirmed a pointy decline from a excessive of 1.5 to 0.87 in solely two days.
On common, it steered that contributors have been now promoting reasonably than shopping for when the value hit $1.50. On Binance, the ratio was 0.91, whereas on OKX it was 0.61.
Supply: CoinGlass
Altogether, these indicators pointed at a possible reversal in worth, not less than for the brief time period, following a brand new peak.
Nonetheless, the altcoin might proceed rallying as prime merchants on Binance have been shopping for with the Lengthy/Quick Ratio at 1.44.
Ultimate Abstract
- BARD rallies 39% amid a rise in quantity, however the venture’s crew deposits into the trade raised concern.
- BARD worth was exhibiting a bearish divergence that was backed by the declining Lengthy/Quick Ratio.
