- DAG crypto soared 20% in a day but faced buyer exhaustion.
- Will the rally stall and trigger a price pullback amid muted market interest?
Constellation [DAG], the self-proclaimed revolutionary in scaling blockchains, jumped 20% on the 18th of November.
The rally pushed DAG to a five-month high of $0.05, key Q1 support that was flipped into resistance in H2.
At press time, the strong buying pressure witnessed earlier in the week was losing steam, as shown by the long upper candlestick wick; what’s next for DAG?
What’s next for DAG’s price?
Source: DAGUSDT, TradingView
On the daily price charts, buyers’ exhaustion was evident at the time of writing, as seen by a slight price rejection at the Q1 2024 support level of $0.05. The level acted as a strong resistance during the May price recovery.
If a similar scenario occurs again in November, DAG could retreat to $0.04 or $0.035, key support levels that eased the May price pullback.
However, given the extra headroom for a price rally, as shown by the OBV (On-Balance Volume), DAG could re-target the $0.05 roadblock or even breach it.
If so, late bulls could seek market re-entry at the aforementioned levels, eyeing the $0.05 roadblock or the upper resistance level at $0.07.
The two targets could yield 35% and 77% potential gains if DAG taps the two bullish targets.
DAG’s network activity surged
Source: Into The Block
The price rally seen in the past week was also marked by a spike in network activity. The number of active addresses surged nearly doubled, but was way too small (about 20 addresses).
Interestingly, there was a slight spike in new addresses, which later tapered off (blue line), suggesting that not so many users were FOMO’ing into the DAG rally.
Read Constellation [DAG] Price Prediction 2024-2025
This limited market interest could be a setback for a strong rally beyond the $0.05 roadblock.
In conclusion, DAG’s buyer exhaustion could reinforce the $0.05 hurdle, but a potential pullback could offer buy opportunities for late bulls.
