Solana Mobile launched a token for their second-generation Web3 smartphone, Seeker [SKR]. The token has been performing relatively well, surpassing a market cap of $100 million.
This milestone pushed it to be among the top 200 cryptos by market cap. In the past 24 hours, Seeker led this category in daily gains after surging over 70%. The spike erased the weekly losses and pushed the gains to 48%.
But what is behind this sudden surge after declining since the middle of this month?
What drove Seeker’s rally?
Seeker rallied this high due to an uptick of more than 429% in daily trading volume. The uptick came as a result of the Upbit listing, which exposed Seeker to Korean traders and, at large, the Asian market.
Upbit exchange will support three SKR trading pairs featuring Bitcoin [BTC], USDT, and KRW as quoted currencies. This resulted in increased speculative trading exposure for the Seeker cryptocurrency.
This high volume contradicted a falling crypto market. However, can the altcoin sustain the high volume, or will it be another ‘pump and dump’ scenario?
SKR price action breaks out
The charts showed that the altcoin had broken above a falling trend channel, which had confined the price for about 12 days. Price rallied aggressively from $0.19 to above $0.26 in just an hour of launching on Upbit.
The Cumulative Volume Delta (CVD), which notes the difference in buying and selling pressure, was bullish. When writing, the CVD was at 369 million SKR, suggesting massive resultant buying.
This positive capital inflow to Seeker crypto was evident in the Chaikin Money Flow (CMF), whose reading was at 0.47. The indicator showed capital inflow started the previous day, just before the listing.
Source: SKR/USDT on TradingView
Historically, most exchange listings end up retracing. That’s why it is always worth locking in the profits, especially in sudden price changes like this one.
However, the market’s widespread profit-taking would prevent the rally from continuing.
Traders’ profit-taking risks rally sustainability
Apart from usual pullbacks after sharp rallies, profit-taking could also curtail this move from continuing. As per CoinGlass data, SKR traders flipped the Long/Short Ratio red just after the price hit $0.030.
The ratio had dropped from its daytime peak of 1.43 to 0.84 at the time of writing. This meant that traders were selling in fear of giving back the gains.
On the Binance Futures market, the Long/Short Ratio dipped as low as 0.58. This means most of the profit-taking happened across the globe more than in the Asian market, which drove this rally.
Source: CoinGlass
Still, Seeker was down about 17% this month, indicating there were still traders seeing losses.
Final Summary
- Seeker rallies 70% after the Upbit listing and technical breakout.
- SKR price faced the risk of a rally pause as traders intensified profit-taking.
Source: https://ambcrypto.com/seeker-is-up-40-in-24-hours-will-profit-taking-trap-skr-bulls/
