CSPR Breaks Free from Extended Downtrend with 100% Surge

CSPR, the native token of the Casper Network blockchain, saw an impressive rally of over 100% on Monday, reaching an intraday peak of $0.026 on Nov. 18. This marks its highest value in five months, pushing its market capitalization to $250 million. The surge comes amid growing demand from futures traders and a sharp increase in market volatility.

The rally in CSPR’s price aligns with a broader market uptrend, spurred by Bitcoin’s recent all-time high of $93,477.11 on Nov. 13, before stabilizing above $91,000. This surge is notable given CSPR’s prolonged decline, with the altcoin losing more than 81% of its value since March, largely due to security concerns and diminishing community interest. However, signs of a reversal began emerging on Nov. 16.

Futures market activity surrounding CSPR has also seen a notable increase. According to data from CoinGlass, open interest in CSPR futures rose by 101.51% in a single day, from $2.9 million to $5.9 million. This jump indicates growing demand from traders. Additionally, the weighted funding rate shifted from a negative -0.0982% to a positive 0.1120%, reflecting more traders betting on price increases by taking long positions.

CSPR’s daily trading volume also surged, jumping more than six-fold to surpass $471 million. As a result, the altcoin topped the CoinGecko gainers list and became the 290th largest cryptocurrency by market cap. Despite the recent gains, CSPR is still down 98.53% from its all-time high of $1.33, which occurred on May 12, 2021.

Market sentiment around CSPR remains largely optimistic, with CoinMarketCap’s social sentiment tracker showing 92% of traders anticipating short-term gains. Investor interest is growing, pushing the token into trending searches on Google.

Possible Consolidation Ahead

Despite the strong rally, technical indicators suggest CSPR may face a period of consolidation before resuming its upward trend. On the 1-day CSPR/USDT chart, the price is currently above the upper Bollinger Band, signaling potential overbought conditions. The Relative Strength Index (RSI) peaked at 86 the previous day, before dropping to 74, indicating that buying pressure is starting to ease.

However, the Moving Average Convergence Divergence (MACD) indicator remains in a bullish phase, with both the MACD and signal line above zero, and the MACD line continuing to outpace the signal line. This suggests CSPR could experience a short-term consolidation before continuing its broader uptrend.

Analysts suggest that if CSPR can successfully convert the $0.025 resistance level into support, the next key resistance target lies at $0.05. As of writing, CSPR is trading at $0.019.