The Reef token has demonstrated significant growth for five consecutive days after being delisted from Binance. This rise is linked to increased demand in both the spot and futures markets.
Introduction
Reef hit a high of $0.0012 on September 3, marking its highest point in a month and 106% above its lowest point last month. This recovery brought its market cap to over $25 million. The recovery of the token followed the launch of a new developer support fund.
Increase in Demand for Reef
Reef's rally led to a sharp increase in investor demand. CoinGecko data indicates that the 24-hour trading volume jumped to $45 million, nearly doubling from the $23 million seen on September 1. Additionally, Reef's open interest in the futures market soared to $60 million, its highest level in two years.
Price Movement Analysis
Reef reached $0.0013, surpassing the important resistance level of $0.0011. Before this rebound, the token formed a falling wedge, a bullish reversal indicator. The uptrend has pushed Reef above the 50-day moving average, with the Relative Strength Index (RSI) nearing the overbought level of 70. The Average Directional Index (ADX) suggests trend strength at a level of 50.
The recovery of the Reef token is attributed to several factors, including the launch of the new developer fund and increasing activity in the futures market. Future price behavior will depend on market conditions and investor interest.
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