Why Mask Network Price Jumped 50% As Crypto Market Bled

Why Mask Network Price Jumped 50% As Crypto Market Bled

The Mask Network (MASK) price initiated a very sharp upward movement on Nov. 2 due to positive news from Binance. However, it has yet to clear its primary resistance at $3.65.

Binance announced that it would launch the Bluebird Index perpetual contracts with up to 25x leverage. The index will comprise Binance Coin (BNB), Dogecoin (DOGE), and Mask Network (MASK). It will be weighted based on volume and market cap and rebalanced each Thursday. Currently, the weights are as follows: 

  • BNB – 51.8%
  • DOGE – 41.9%
  • MASK – 6.3%

While there hasn’t been a noticeable effect in the price of BNB or DOGE, the Mask network price has pumped by nearly 70% right after the announcement, leading to a high of $4.48. The pump was especially notable because the rest of the market has been gradually bleeding. This possibly occurred as a result of the mixed performance of the Asia-Pacific stocks ahead of the FOMC meeting.

MASK Price Pumps But Fails to Clear Resistance

The MASK price began its upward movement on Oct. 26 and reached a high of $3.03 three days later. This amounted to an increase of nearly 200% in three days.

At the time, there was no positive news that could precede the upward movement. 

After a brief retracement, the MASK price began another sharp upward movement on Nov. 2, leading to a high of $4.48.

Despite the upward trend, MASK failed to break out from the $3.65 resistance area and created a long upper wick (red icon) instead. 

However, the daily RSI does not show any signs of weakness yet. Regardless of being overbought, it has not generated any bearish divergence. As a result, it suggests that the MASK price will eventually be successful in moving above the $3.65 area. 

If it does, the next resistance would be at $6.40. 

 

Short-Term Decrease Followed by Rally

The movement since the Oct. lows resembles a five-wave upward movement. In it, the MASK price is in the fifth and final wave, after which a retracement is expected.

Additionally, both the RSI and candlestick movements are showing bearish signs. The RSI has generated bearish divergence (green line) and there are several long upper wicks in place over the past 24 hours (red icons). 

As a result, a retracement towards the 0.5-0.618 Fib retracement levels could occur. This support area is at $2.31-$2.72.

Alternatively, a daily close above the $3.65 area would indicate that the upward movement will continue towards the $6.40 resistance instead of a short-term correction.

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