Foreign media reports that Bitcoin has been weakening for the past week, leading to a cooling of sentiment in the altcoin market, and SIREN's short-term rebound quickly lost support. The article argues that with both trading volume and open interest declining, these tokens lacking sustained buying pressure still face further downward pressure.
Bitcoin's decline drags down altcoins
The article mentions that Bitcoin fell 1.5% in the past 24 hours, with a cumulative drop of over 15% in the past week. As a result, the total market capitalization of altcoins declined by 9.7% within a week. Glassnode data also shows that the meme coin sector fell by approximately 10% during the same period.
The article argues that even if Bitcoin eventually stops falling, weak altcoins with insufficient demand or a lack of market narrative support may continue to underperform Bitcoin.
SIREN trading volume and open interest both declined.
SIREN fell 12% in the past 24 hours. Meanwhile, its daily trading volume dropped 40%, and open interest decreased by 17%. These figures typically indicate that some traders have exited the market, and market risk appetite has weakened.
AMBCrypto had previously focused on whether the short-term surge on June 4th could develop into a trend reversal. At that time, the article suggested that a longer-term reversal signal could only be confirmed if the price could break through the $1.13 resistance level. However, as Bitcoin approached the $60,000 mark, market sentiment turned cautious, and SIREN's rebound failed to continue.
The rebound was thwarted and the price weakened again.
The article states that SIREN's daily chart structure turned bearish after falling to $0.131 in April. Although there was a significant rebound in May, it quickly fell back from its highs, leaving a price gap in the $0.588 to $0.956 range on a higher timeframe.
According to the article, the price encountered resistance near the middle of this gap and subsequently weakened again. It had previously briefly regained the $0.672 level, but the bulls failed to hold it, and the price subsequently fell back below that level.
The article argues that, given the weak structure of higher timeframes, the stalled rebound, and the continued pressure on Bitcoin, SIREN may test support levels around $0.575 and $0.48.
