Telegram Coin ChainGPT (GPT) is another bot token that registered an unexpected rally that may be difficult to sustain for the altcoin.
The reason behind this is the lack of strength and support from investors despite the strong bullish momentum.
ChainGPT Fails to Cause a Chain Reaction
CGPT’s price shot up over the past week and increased the gains of its inventors. However, this did not translate to a bullish momentum as it failed to see enough interest from the interest. This can be observed by combining two key indicators.
The Relative Strength Index ( RSI ) is signaling buying pressure following the recent rally. The indicator, currently at a three-month high, suggests the asset is experiencing strong upward momentum.
The RSI being above the neutral line indicates increased buying interest. This suggests that investors are optimistic about the Telegram Coin’s potential for further gains, contributing to the current bullish sentiment.
However, the Chaikin Money Flow (CMF) presents a contrasting picture. Despite the ongoing uptrend, the indicator is still below the zero line. This indicates that inflows are weak, which could potentially undermine the recent growth seen in the RSI.
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This divergence between the RSI and CMF highlights a possible discrepancy in the market dynamics. While the RSI suggests strong buying pressure, the weak inflows indicated by the CMF could pose a risk to the sustainability of CGPT’s recent rally.
CGPT Price Prediction: No More Upside
CGPT’s price, trading at $0.159, failed to breach the resistance at $0.170, something the altcoin has noted in the past as well. If the indicators impact the altcoin as expected, the Telegram coin could consolidate between $0.170 and $0.125.
This could halt the ongoing rise and potentially even undo it should it decline to test $0.125 as support.
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However, if it breaches the resistance of $0.170, CGPT’s price could rally toward $0.200, invalidating the bearish thesis.
