RedStone (RED) breaks through important resistance, target $1 in sight?

RedStone (RED) – a rapidly emerging token oracle – has just recorded an impressive trading surge, with daily volume increasing by up to 101% within just 24 hours as of the time of writing.

However, data from CoinMarketCap reveals a paradox: the increase in liquidity is accompanied by a sharp price adjustment, as RED loses up to 9.38% in the short term.

Not only RedStone, but the cryptocurrency market in general is also bleak. During the same period, Bitcoin (BTC) and Ethereum (ETH) decreased by 1.78% and 2.09% respectively, while the total market capitalization of altcoins dropped by an additional 1.3%. This could be one of the direct reasons putting pressure on RED.

So, where will the trend of this token go in the short and long term? Should investors take the opportunity to buy, take profits, or patiently wait for clearer signals from the market?

Can RedStone's "bull" faction protect its recent achievements?

The motivation behind the strong breakout on September 5th came from the announcement of the listing on the Upbit exchange. At the peak of 1.19 USD, RED recorded a staggering increase of 193% in just one day.

On Binance, the RED/USDT pair saw spot trading volume reach 139.57 million USD, far exceeding the previous 20-day average of 17 million USD. However, profit-taking pressure quickly emerged, wiping out most of the gains.

Fibonacci retracement analysis shows that $0.573 is currently a key support area. Below, the $0.5 mark carries both psychological and technical factors, having been resistance since April. If successfully tested, this could become a potential buying point.

Daily chart of RED/USDT | Source: TradingViewConversely, the next price targets are identified at 0.7 USD, 0.9 USD, the psychological resistance level of 1 USD, and 1.19 USD – the peak set on September 5.

The OBV indicator has surged strongly due to buying pressure, while the Awesome Oscillator shows positive momentum without any sign of bearish divergence. The moving averages (MA) have not yet caught up with the spike of over 65% in just one day.

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