Analysts Issue a Warning for an Altcoin That Surged 1,200%

Crypto analytics company Alphractal has issued a warning about altcoin, which has seen a significant increase of over 1,200% in just over a month.

Crypto analytics firm Alphractal has raised concerns about the rapid surge of over 1,200% in altcoin REEF within just over a month. While this spike has been profitable for early investors, the company cautions that the risks have grown, hinting at a potential market correction.

REEF is currently trading well above both its 200-day and 100-day moving averages, which Alphractal sees as a warning sign. The further an asset strays from these averages, the higher the risk of a correction.

Historically, negative shifts in REEF’s long/short ratio have been followed by upward price trends. However, a shift toward long positions now could impact the current market sentiment.

REEF’s volume-to-market capitalization ratio is at 162%, reflecting strong interest in leveraged altcoin trades, and signaling heightened volatility and the potential for a price dip. The funding ratio for REEF has returned to positive territory, but the MACD indicator has turned negative, suggesting a change in market sentiment.

Given these indicators, Alphractal believes REEF may soon enter a pullback phase as it seeks renewed buyer interest.