Sia is a blockchain-based decentralized cloud storage platform. The business deals and agreements are enforced with smart contracts. The fees of using the platform is paid by the token called SC.Smart contracts enable agreements to be enforced, and Siacoins are used to pay for storage on the network. This project is attempting to become the “backbone storage layers of the internet.” Sia is in direct competition with major cloud storage providers such as Google, Amazon, and Microsoft.
Let us look at the technical analysis for SC.
On the 26th of July, SC started trading at $0.01158 and, on the 1st of August, SC closed at $0.01588. Thus, in the past week, the price of SC decreased approximately by 37%. And, in the last 24-hours, SC traded between $0.01545-$0.01807.
Currently, SC is trading at $0.01603 which is approximately 13% low from the opening price. Therefore, we can witness some profit booking after a short rally. Moreover, the price has broken out of its parallel channel in this rally. Thus, it is bound to retest the breakout level. We will have to wait and watch to see if the price breaks down from the level of $0.01320. Then, SC will officially be in a bearish trend.
The RSI is at $71.80, which is the overbought zone. However, looking at the market dynamics, it has more potential to rise. But, as per the indicator, we might expect the SC price to fall down for the rest of the day.
On the daily chart, the MACD and signal lines are below the zero range. However, we can see a bullish crossover by the Signal line over the MACD line. Thus, the overall market momentum seems bullish, and we can expect a price to rise for a day or so.
The current price is close to Fibonacci support level 1 which is $0.015 but is below the mark of Fibonacci pivot point $0.017. If the buying pressure takes over the selling pressure, then we can expect the price to test and break out of the Fibonacci resistance level.
CVIX for Siacoin suggests there is a possibility of huge fluctuations in the price of Siacoin as the price has decreased in the last 24 hours because the selling pressures are high. Siacoin has managed to maintain a bullish trend, but there is a possibility of a further fall in price for tomorrow.