Examining why SIREN struggles below $0.32 despite 18% daily rally

After five straight days of decline, Siren [SIREN] finally found support and reversed higher. The memecoin hit a local low of $0.13, defended the $0.20 level, climbed to $0.27, and then retraced.

At the time of writing, SIREN traded at $0.21, up 18.9% on the daily charts. Over the same period, its trading volume rose 66% to $56 million, reflecting strong market participation.  

SIREN buyers defend key levels

After SIREN dropped below $0.2 and strengthened ground below this critical support level, buyers rushed to accumulate during the dip. 

At press time, SIREN recorded 623 million in Buy Volume compared to 605 million in Sell Volume. As a result, the memecoin’s Buy Sell Delta turned positive. At the same time, net buying volume rose to 105 million, a clear sign of aggressive spot accumulation. 

Furthermore, exchange activity also echoed this buying activity. CoinGlass data showed that over $10 million flowed out of exchanges, while $8.2 million flowed into them. 

The memecoin’s Netflow dropped 1021% to -$1.93 million, indicating strong market demand. Traditionally, higher outflows have reduced supply, increasing scarcity and thus boosting asset prices. 

Risk appetite recovers

In addition to increased spot demand, traders have shown greater risk appetite as they sought strategic positioning. 

SIREN’s Open Interest (OI) rose 33% to $58 million, while the Derivatives volume climbed 78% to $612 million. Such a jump in OI alongside volume showed increased market participation and capital inflows into futures positions. 

The memecoin recorded $250 million in Futures inflows, while $248 million flowed out. As a result, net flow declined but remained positive at $2.29 million at press time.

Meanwhile, the memecoin’s Long Short Ratio rose to 1.0008, with Binance leading with 2.11. The average ratio of 1.5 signaled stronger demand for long positions and rising optimism. However, liquidation risk also spiked, with more than $1 million in longs wiped out.

Why the memecoin remains bearish

SIREN saw a trend reversal as buyers across the market rushed to defend key price levels. Despite recent gains, the memecoin remains deeply stuck in the bearish zone.

The Relative Strength Index (RSI) has declined consecutively, falling from 56 to 42 at press time. Such a drop suggested that buyers have continually lost market control, while sellers have become overly strong.

Even more so, SIREN remains below both short- and long-term Moving Averages, validating bearish strength. Under these conditions, past demand needs to be strengthened to overcome this bearishness.

In doing so, the memecoin could hold strongly above $0.2, flip $0.32 in the short term, and target $0.5 next. To see a significant recovery, bulls need to ensure SIREN closes above $0.7.

Failure to do so, especially with the trend still bearish, could cause the memecoin to slip below $0.20, with $0.13 as the key support level.

Final Summary

• Siren signaled a trend reversal after 5 days of a downtrend, defending the $0.2 support level following an 18% surge. 
• SIREN saw increased demand across the market, but momentum remains bearish, with pullback risk remaining strong.