- Elon Musk tweet sends VINE token volume soaring to $5.98 billion.
- VINE breaks Fibonacci resistance levels, targets $0.16 amid bullish technical indicators.
- RSI exceeds 87 as the token rallies above VWAP, signaling potential continuation.
A recent tweet by Elon Musk has reintroduced Vine Coin into the limelight. His X post brought about a steep price rise and an enormous increase in derivatives activity.
The tweet caused a speculative run that the futures volume of the token reached $5.98 billion. It also caused a bull push in both spot and technical markets.
A Twitter Post by Elon Musk Caused VINE Price To Rise
Vine Coin captured new attention after Musk tweeted, we are bringing back Vine, but in AI format. The price of VINE increased as the tweet was associated with the token.
It is a blockchain-connected token, and was originally known as a Vine video app. The post by Elon Musk brought speculative interest to the technical set up of this token.
His impact on the digital assets is not a secret. His tweets usually cause instant reactions among traders when they have mentions of crypto, decentralization, or media apps.
The tweet created speculations that the token could be involved in a decentralized video program. There is no official link. But it is on the basis of the hype that the traders have sought to promote demand for this token. Such a response repeats itself with other Musk-inspired tokens.
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VINE Futures Volume Approaches $6 Billion
There was an immediate response on the part of derivatives traders. According to Coinglass data, VINE futures volume rose by 438.75% to $5.98 billion.
The open interest also increased significantly by 94.87% to $186.8 million. It indicates that there are a lot of traders going long in the hope of the upward move continuing.
Currently, Vine Coin is trading at $0.15235, which higher than what it was during July at $0.084. The price rose towards the level of $0.17380 and then pulled back a little.
It is above major technical indicators and with support at the $0.14758 level. In addition, the immediate resistance is at the $0.15588 level.
Source: Coinglass
VINE Rises Sharply Past Key Fib Levels
The spot market volume confirms high activity. According to the TradingView data, 115.72 million VINE was traded during the past 4 hours.
The Fibonacci retracement is proof that VINE has broken significant levels of resistance. The token surged beyond the 0.786 Fib at the price of $0.08694.
It was later able to cross the 1.0 Fib line at the $0.08466 level, triggering a breakout pattern. The next target based on the Fib-based projection is$ 0.15588.
VAWP and Fib. Source: TradingView
VINE Continues to be Bullish
There has also been a bullish crossover on the MACD. The MACD denotes 0.02467 which is higher than the signal line of 0.01561. This is a confirmation of an increasing uptrend.
Its RSI has rocketed to 87.62, and is way above the overbought reading of 70. It shows high buying pressure, which can at the same time be a sign of temporary exhaustion.
The rally is supported by market structure. From April to June, VINE was trading below the $0.05 mark. The new upward movement began in early July and gained momentum due to the tweet by Musk.
MACD and RSI. Source: TradingView
MACD and RSI are both indicating a rally while volume and VWAP also confirms this trend. With the RSI greater than 87, the asset is technically overbought.
This may give rise to profit-taking or short-term selling should the price not be able to remain above resistance levels. The secret to the next step is volume and VWAP behavior.
In case volume is still large and price rises and sustains above $0.15173, it could produce a higher push. In case the token drops under $0.147, bear pressure can accumulate.
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