🌎 CSPR Token Soars 100% as Futures Demand Skyrockets

CSPR Surges Over 100% Amid Increased Demand

CSPR, the native token of the Casper Network blockchain platform, has experienced a significant price increase, surging over 100% on Monday. This rise in value is attributed to heightened demand from futures investors and traders, driven by a notable spike in volatility.

On November 18, CSPR reached an intraday high of $0.026, marking its highest point in the past five months. This surge brought the token’s market cap to $250 million. The price rally of CSPR coincides with a broader market bullish momentum, particularly influenced by Bitcoin’s recent all-time high of $93,477.11 on November 13. Bitcoin has since stabilized above $91,000.

After months of decline, where CSPR lost over 81% of its value since March due to security issues and waning community interest, the token began showing signs of a potential reversal around November 16.

Rising Futures Interest and Positive Funding Rate

CSPR has seen a significant increase in futures open interest. Data indicates that the open interest in CSPR’s futures market has soared by 101.51% over the past day, rising from $2.9 million to $5.9 million. This jump suggests growing demand from traders.

Additionally, the weighted funding rate has shifted from a deeply negative -0.0982% to a positive 0.1120%. A positive funding rate suggests that more traders are taking long positions, indicating a majority expectation of rising prices. Traders are paying a premium to maintain these positions, anticipating further price gains.

Increased Trading Volume and Market Position

CSPR’s daily trading volume has surged over six-fold in the previous day, reaching over $471 million. These significant gains have positioned CSPR as the top gainer on CoinGecko, making it the 290th largest crypto asset by market cap. Despite this, the token remains down 98.53% from its all-time high of $1.33, achieved on May 12, 2021.

The crypto community remains bullish on CSPR, with social sentiment metrics indicating that 92% of traders expect short-term gains. Growing investor interest has also made the altcoin trend on Google.

Potential Consolidation Ahead

Technical indicators suggest that CSPR might trade sideways for a period before resuming its upward trend. On the 1-day CSPR/USDT price chart, the token’s price was above the upper Bollinger Band, indicating overbought conditions. The Relative Strength Index (RSI), which peaked at 86, had dropped to 74, suggesting easing buying pressure.

However, the Moving Average Convergence Divergence (MACD) indicator shows that CSPR remains in a bullish phase, with both the MACD and signal lines above 0 and the MACD line well above the signal line. This suggests that CSPR could be consolidating in the short term before the broader uptrend continues.

An analyst notes that the next resistance level for CSPR lies at $0.05, provided it successfully turns the $0.025 resistance into support. At the time of writing, the altcoin was trading at $0.019.