FORM leads with 30% gain – But traders are already deleveraging

In the past 24 hours, Form [FORM] rallied over 30%, outperforming the entire market and leading by gains for the top 200 coins by capitalization. The volume jumped by 90% during this period, recording around $89 million.

The token continues to lead BNB Smart Chain (BSC) memecoin launchpads. Its price action was breaking above a slanting resistance zone, with future data becoming the clear driver. However, with declining Spot volume, can FORM sustain this trend?

FORM’s price volatility is exploding

On the charts, FORM price broke above the descending trendline at $0.19, which had resisted the uptrend since January 11th.

The breakout happened after a month of compression in February, when the Bollinger Band (BB) remained tight. Right now, FORM has been trending up with BB opening up, indicating the volatility is exploding.

Additionally, the MACD showed that bulls were strong, though their momentum had slightly faded as FORM traded between $0.27 and $0.30.

In case bulls continued to accumulate FORM crypto, the memecoin launchpad could hit $0.45, which was the peak of the slanting resistance. However, there was potential for a pullback now that the price was consolidating between $0.27 and $0.30.

Derivative whales are buying aggressively

The volume from derivative whales primarily drove the FORM price. As per data from CryptoQuant, whales started accumulating FORM tokens around $0.19 in late February. They have continued buying aggressively even at a price of around $0.27.

The trend was evident in the Cumulative Volume Delta (CVD) for the last three months, which was green. For the past month, the past two days have had the highest CVD, indicating buyer dominance over sellers.

For the Average Order Size and Taker CVD, they were both neutral on the Spot markets. This implied that traders on the spot market were neglecting the crypto. But was this an issue going forward now that volume was declining?

Spot volume decreasing

The Spot Volume Bubble Map showed that the volume was cooling, a clear divergence from the Futures market. This indicated that the general market was not so confident in its long-term outlook.

As such, it could risk the continuation of the current rally. This is due to the tendency of traders to close leveraged orders more quickly than spot ones, as leverage carries both advantages and disadvantages.

In fact, traders were deleveraging above $0.30 on the Binance exchange, as per CoinGlass data. This meant that participants anticipated that the rally could pull back from $0.30.

Final Summary

• FORM rallies 30% in 24 hours due to aggressive buying by whales and increased volume. 
• Traders were deleveraging from FORM trades at prices above $0.30, indicating a potential pullback.