SYRUP pulls back to $0.5, but there’s an opportunity ahead

• SYRUP’s retracement toward $0.5 comes on the back of weak selling volume.
• The lower timeframes looked bearish, and traders could wait for signs of a reversal before buying.

Maple Finance [SYRUP] was in a steady uptrend over the past six weeks. In June, the decentralized finance token had rallied 98%, rising from $0.331 to $0.658 before experiencing a retracement over the past week.

Source: SYRUP/USDT on TradingView

On the 1-day chart, the token had a strongly bullish bias. Based on the most recent impulse move higher, a set of Fibonacci retracement levels was plotted.

They showcased the $0.494 and $0.45 levels as key support levels that must be defended for the uptrend to continue.

During the swift surge higher, SYRUP also left behind a fair value gap (FVG). Marked in white, these regions represent imbalances that the price tends to revisit later.

In this case, it was likely to act as a demand zone. The confluence with the 50% and 61.8% retracement levels helped make the case that the current retracement could end at $0.5.

The technical indicators were also in favor of the bulls. The OBV has not broken its uptrend, showing buyer dominance. The RSI remained above the neutral 50 mark to reflect bullish momentum was intact.

Maple Finance token traders need some patience

Source: SYRUP/USDT on TradingView

The 4-hour chart reflected a bearish market structure and downward momentum in recent days. The break of the low at $0.556 represented a bearish structure break, which lead to a move downward.

Traders looking to buy SYRUP need to wait for the price to make higher lows. A possible recovery scenario was marked in green.

The higher lows would indicate bearish pressure was weakening, and a higher high thereafter would represent a bullish structure break. This development could be used to bid SYRUP.

Source: CoinGlass

The 2-week liquidation heatmap highlighted how the price has swept the major magnetic zones just above the $0.5 mark.

Since most of the accumulated long liquidations have been swept, Maple Finance token was ready to resume its uptrend.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion