Siacoin Pumps 70% in One Week — Can SC Reach New Heights?

Key Takeaways

• Siacoin’s rapid price increase since January 25 was driven by market and technical factors.
• February update brought significant Sia network advancements, enhancing performance and user experience.
• Despite bearish signals, Siacoin’s price trajectory continued upward, showing resilience and potential for future growth.

 Siacoin was in an uptrend from mid-September when it established its low at around $0.0025. On January 24, it peaked at $0.0135, a rise of 370%. The price fell by a staggering 40% in the next two days, wiping out all the gains previously made in 20 days. 

Many have interpreted this as a clear bearish signal with more downside. Instead, Siacoin continued its upward trajectory and reached a new high of $0.0176 on, February 21, increasing over 110% since its January 25 low. 

Can Siacoin continue rising after going parabolic and forming new highs?

What Drove The Siacoin Price Rise?

The significant price rise of Siacoin (SC) since January 25, 2024, is down to various factors, including market trends, technical developments, and updates from the Siacoin team. Even though a price decrease ended on January 25, it didn’t start going up until February 12. 

The February 2024 update  from the Sia network highlights substantial advancements in a range of components, focusing on stability, performance, and user experience. Significant enhancements include the implementation of RHP4 for the upcoming Utreexo hardfork, aiming to boost network efficiency and scalability. 

New features, such as metadata addition to objects and improvements in upload processes, have come in to enhance data management and user interaction. Additionally, walletd is moving towards its beta release, with efforts on testing, documentation, and API standardization, including experimental SQLite support for database management.

In summary, the Siacoin community was excited about numerous technical developments that have been implemented. But considering the price was in a larger uptrend, most of the price rise came from investors and traders. 

SC Price Analysis 

From its all-time high of $0.06 in April 2021, SC has been in a bear market. On November 12, it reached a low of $0.0022, later established in December. A horizontal range formed, with $0.005 serving as resistance. 

This was its consolidation phase that served to establish a new support plateau before finally embarking on the next upward journey from mid-October. SC gained 540% from its October low of $0.0027 to February 21’s high of $0.017. 

Comparing the rise with the daily chart Relative Strength Index, there is a bearish divergence, with the RSI forming a descending channel while price action formed an ascending one. This could indicate this uptrend doesn’t have enough momentum to continue. 

Because the price broke out from its long-lasting consolidation zone, it may have started a larger bull cycle. This uptrend from October could be the first one after which a first bull market correction should come. 

This is why we could now anticipate a retracement to retest some of the broken levels for support. After this macro higher low, SC could continue rising even further in 2024. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.a