The BANANA trading bot from Telegram saw a remarkable surge of over 55% in its price within a day, peaking at an 87% increase in value. This sharp upswing was largely due to Binance listing the coin on its exchange platform, resulting in brisk buying activity. This, however, led to the cryptocurrency becoming overbought, as the bullish sentiment surrounding it reached saturation within that same day.
Despite the dramatic price increase, the Chaikin Money Flow (CMF) showcased another side of the story. The CMF, often used to determine market sentiment, indicated that there were predominantly outflows from the asset and very minimal inflows, suggesting a lack of continued buying interest.
The successful listing of the Telegram coin on Binance triggered a very high demand for the crypto, which resulted in the significant leap in Banana Gun’s value. Even so, the metrics do not predict a price increase going forward. The Relative Strength Index (RSI), a primary indicator of trend exhaustion, also indicated that the coin was overbought.
At the height of its intra-day increase, BANANA’s price reached an all-time high of $87.03. However, it couldn’t hold onto this value and fell to $70.06, ending the day with a still notable 30% rise. Accordingly, the $70.61 mark is viewed as a critical resistance point for the Telegram coin.
As it is now, the major hurdles facing BANANA include a stagnation of bullishness and a decrease in inflows. If left unchecked, these challenges might push the coin down to $65.00 or even lower, undoing much of its recent gains. To continue their upwards trajectory following their Binance listing on July 20, they will need high demand. If investors can add more BANANA to their portfolios and resist the temptation to sell for immediate profits, the $70.61 resistance might be broken, and the crypto might rise to $75. However, a new all-time high seems to be off the table for now.