While the rest of the crypto market fell, BEAM became one of the biggest gainers among the top 100 cryptocurrencies on October 23, rising 7.4%.
Beam (BEAM) is up 27% from this week’s low point, rising to an intraday high of $0.0198 for five days in a row. This pushed the altcoin’s market cap to over $1 billion, while daily trading volume reached over $101.8 million, a 161% increase from the previous day’s level.
Beam’s rise coincided with a jump in open interest in futures. According to data from CoinGlass, open interest in the futures market rose from a low of $3.54 million on Sept. 8 to a three-month high of $11.87 million. The increase in open positions in futures indicates that investors’ interest has increased and the upward trend in this scenario is gaining further momentum.
On the 1D BEAM/USDT price chart, BEAM is trading above the 50-day and 100-day Exponential Moving Averages, signaling that the short-term uptrend is continuing.
BEAM 50-day and 200-day EMA chart — October 23 | Source: crypto.news
The Relative Strength Index line has risen to around 62, indicating strong bullish momentum. A positive divergence between the RSI and price action indicates that the market is likely experiencing a growing uptrend and further uptrend is expected.
BEAM RSI and MACD price chart — October 23 | Source: crypto.news
Simultaneously, the Moving Average Convergence Divergence indicator drew bullish histogram bars along with the MACD line crossing over the signal line, further strengthening the ongoing buying pressure. This indicates an accumulation phase among buyers, confirming the likelihood that the price increase momentum will be sustainable in the short and medium term.
Although the potential catalyst for Beam’s recent rise cannot be confirmed, one analyst noted that the altcoin has broken out of the descending accumulation channel it has formed since March. In technical analysis, such a breakout indicates a possible trend reversal that increases the bullish sentiment for the altcoin.
Fake anonymous trader Mister Crypto predicted that if BEAM manages to break the resistance level at $0.020, which it has failed to break multiple times since July, the break could trigger a strong uptrend and lead to a potential price “explosion.”
In a bearish development, major BEAM holders appear to be stepping back. Data from IntoTheBlock shows that they accumulated 3.49 billion tokens worth $63.5 million on June 18, but that figure has since dropped to around $1 million. Considering that whales hold over 73.9% of the total BEAM supply, this sharp drop in inflows could increase downward pressure if these traders decide to sell their holdings.