Goatseus Maximus (GOAT) became the best performing cryptocurrency over the past 24 hours, rising 40%. This price rise follows a recent decline in the value of GOAT and aligns with an overall rise in the cryptocurrency market.
Although GOAT’s rally has excited investors, analysts warn that the momentum could be short-lived as the market shows signs of overheating. Once momentum cools, GOAT could face downward pressure. In this analysis, we explore possible price targets for GOAT as it approaches a potential correction phase.
GOAT is rising, but there’s a catch
The evaluation of BeInCrypto on GOAT/USD four-hour chart reveals that the coin itself broke above a descending channel.
The descending channel forms during a downtrend, when the price of an asset oscillates between the two trend lines, creating a series of lower highs and lower lows. When price breaks above the upper trendline of this channel, it signals a change in market sentiment. Such a breakout suggests that the previous bearish momentum has weakened and buyers are taking control.
However, the GOAT breakout could be a bull trap as its market begins to overheat. This is a situation in which the price of an asset appears to be trending upward, encouraging traders to buy, only to have the price quickly reverse and fall.
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Readings from GOAT’s Bollinger Bands indicator, which measures the market volatility and identifies potential buy and sell signals, hinting at the likelihood of this happening. At press time, the meme coin price is trading above the upper level band of this indicator.
When an asset trades above this line, it is overbought. Indeed, its price has moved significantly above the typical range based on its historical volatility. This indicates that the uptrend may be unsustainable and a price correction or reversal may be imminent.
GOAT Price Prediction: Buyer Fatigue Is Imminent
The GOAT Relative Strength Index (RSI) confirms the oversold nature of the token. Its value currently stands at 70.05. THE ROI measures the overbought and oversold market conditions of an asset. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and in need of correction.
On the other hand, values below 30 indicate that the asset is oversold and could experience a rebound. GOAT’s RSI reading of 70.05 indicates that it has become overbought and may see a correction soon.
As of this writing, GOAT is trading at $0.72. Once buyer exhaustion sets in, its price will likely retest the upper line of the descending channel and attempt to establish support at $0.60. If this fails, the downward trend will be confirmed and the Meme coin price could drop as low as $0.41.
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However, if the uptrend continues, the GOAT price rise will continue and the meme coin could regain its all-time high of $0.90.
Disclaimer
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