After successfully holding the $0.11 support level, Falcon Finance [FF] made a major upswing and rose to a four-month high of $0.155. As of this writing, Falcon Finance was trading around $1.51, marking a 25% surge on the daily charts.
Even more strongly, trading volume made a historical surge to a record high, hiking by 1248% to $111 million. At the same time, Falcon Finances market cap crossed $400 million, reaching $465 million, indicating strong capital inflow and higher market activity.
Falcon Finance is seeing steady capital flow
Since reclaiming flipping $0.10 a week ago, FF has experienced sustained growth. In fact, protocols USD inflows rose to a monthly high exceeding $1 million.
Source: Defillama
The rising USD inflows reflect growing network usage, with more users now actively engaged with the network.
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Often a high user base has established demand, leading to more gains on the price charts. On top of that, investors have also increased speculative activity extensively.
According to CoinGlass data, Falcon Finance saw its Open Interest surge by 35% to $175 million. At the same time, derivative volume pumped by a record 468%, reaching $172 million.
Source: Coinglass
With both OI and volume rising in tandem, it reflects a high-risk appetite, with investors betting aggressively by taking leveraged positions.
Holders cashing out recent gains
With Falcon Finance reaching May levels, holders have taken the opportunity to cash out. According to Coinark data, the market delta dropped into the negative zone, reaching levels last witnessed in June.
Source: Coinank
A negative Delta suggests that there are more sell orders than buy. In fact, the sell volume has outpaced buy volume for seven consecutive days. Over the past 24 hours, for example, the altcoin saw 66.7 million in sell volume and 64 million in buy volume.
Source: Coinalyze
Often, when profit-taking surges during an uptrend, it leads to a slowdown or a pullback in its entirety.
Whats next for FF？
Falcon Finance bulls seem to have fully retaken the market, and profit-taking remains insignificant for now. As a result, the altcoins Relative Strength Index (RSI) climbed to 84, touching the overbought zone.
Source: TradingView
Likewise, the Aroon Up line jumped to 100% while the Aroon Down fell to 42%. The rising Aroon to extreme levels confirmed the trend is strong.
Under these market conditions, Falcon Finance is likely to extend the rally and potentially hit $0.2. However, if the profit taking finally brings about any impact, the altcoin will revisit $0.11.
Final Summary
- FF surged 25%, to reach a four-month high of $0.159, as bulls eye a move to $0.2.
- Falcon Finance extended the rally driven by strong demand across the market, but profit takers could derail the uptrend.