Why Mask Network Price Jumped 50% As Crypto Market Disappeared

by Arthur · November 2, 2022

The Mask Network (MASK) price started a very sharp upward movement on November 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 Bluebird Index perpetual contracts with up to 25x leverage. The index will include Binance Coin (BNB), Dogecoin (DOGE), and Mask Network (MASK). It will be weighted based on volume and market value and rebalanced every Thursday. Currently, the weights are as follows:

GNP – 51.8%
DOGE – 41.9%
MASK – 6.3%

Although there has not been a noticeable effect in the price of BNB or DOGE, the Mask network price has pumped by almost 70% immediately after the announcement, leading to a peak of $4.48. The pump was particularly notable because the rest of the market has gradually bled. This possibly occurred as a result of mixed performance of Asia-Pacific shares ahead of the FOMC meeting.

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MASK Price pumps but fails to remove resistance

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

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

After a brief retracement, MASK price began another strong upward move on November 2nd, leading to a high of $4.48.

Despite the uptrend, MASK failed to break out of the $3.65 resistance area and made a long upper wick (red icon) instead.

However, the daily RSI shows no sign 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 succeed in moving above the $3.65 area.

If it does, the next resistance will be $6.40.

Short-term decline followed by rally

The movement since the lows in October resembles a five-wave uptrend. 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 weeks in place over the past 24 hours (red icons).

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

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

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