- Bitcoin Cash (BCH) recently surged over 7%, driven by a record-high transaction rate of 3.6 and rising Open Interest, signaling strong bullish momentum.
- If BCH maintains its support range, it could extend its rally toward the $390.5 resistance level, but a drop below $279.2 may trigger a decline to $255.2.
Bitcoin Cash (BCH) has been making headlines with its recent price rally, surging over 7% in just a day. The increase comes after the cryptocurrency retested a key support level, triggering renewed investor interest. On-chain data and technical indicators suggest that BCH could continue its upward momentum, potentially targeting the $390.5 level.
Transaction Rate Hits a Record High
One of the primary drivers behind BCH’s recent surge is its transaction rate, which has reached an all-time high of 3.6, according to Bitcoin Cash Explorer. This uptick signals increased usage of the BCH blockchain, reflecting a rise in liquidity and trader activity. A higher transaction rate often indicates growing confidence among users, which can further boost price action.
Open Interest Points to More Gains
Another bullish factor for Bitcoin Cash is the rising Open Interest (OI) in futures contracts. Data from Coinglass reveals that BCH’s OI increased from $174.48 million on Sunday to $238.48 million by Wednesday, marking the highest level since early February. A rise in OI suggests that new money is entering the market, reinforcing expectations of an extended rally.
BCH Targets $390.5 as Bulls Take Control
Bitcoin Cash recently found strong support between $279.2 and $299.7, rebounding from this range to trade at $342.4. Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), also paint a positive outlook. The RSI currently stands at 55, indicating bullish momentum, while the MACD recently displayed a bullish crossover, further supporting an upward trajectory.
If BCH maintains its support range, analysts predict an additional 13% surge, pushing the price toward its next resistance level of $390.5. However, if the price drops below $279.2, it could trigger a decline toward its February 21 low of $255.2.
Bitcoin Cash’s recent performance, backed by record-high transaction rates and rising open interest, suggests that bullish sentiment is growing. With technical indicators aligning in favor of an extended rally, BCH investors have reason to remain optimistic. If the cryptocurrency sustains its support levels, it may soon test the $390.5 mark, setting the stage for further gains in the near future.
