The Goatseus Maximus, a goat-themed meme coin, has seen a sharp increase in price since its inception. However, recent analysis suggests it may have reached a level of major resistance around $0.9. After showing signs of weakness at this level, there is a possibility that the price of GOAT could crash by 50%.
The popular meme coin’s trading volume has dropped by 48% in the last two days, while the price has increased. This presents a bearish divergence, signaling a potential price drop in the coming days. The lack of conviction from buyers to push the price above $0.9 could increase selling volume, leading to a potential pullback.
Key support levels to watch are $0.80, which aligns with the lower part of the parabolic curve, and the $0.45 level is marked as “Major Support,” indicating a crucial level if the Goatseus Maximus price undergoes a 49% crash. The relative strength index (RSI) is currently straddling the 70 mark, waving out of the overbought zone, and a sell signal indicates a potential price reversal.
While the ruling bias for the Goatseus Maximus price is currently bearish, shifting market conditions could alter the trajectory of the price and invalidate the bearish bias. The average directional index (ADX) is currently 31.14, with any value above 25 indicating high volatility for the corresponding asset.
Moreover, the ADX is facing upward, meaning volatility is still rising. There is an overwhelming bullish sentiment from derivative traders, who, in the last 24 hours, have opened over $17 million longs on Binance, OKX, and Bybit, according to data from Coinglass. This figure is almost three times as large as the Shorts, which came in at just about $6 million.
The observation is also reflected in the weekly and monthly timeframes. Coinalyze Analytics shows the Goatseus Maximus open interest (OI) increased by 19%, suggesting that the overall amount of open futures contracts (both longs and shorts) is increasing. Combined with the rising price, it signals that traders are entering long positions because they believe in the future, the GOAT price will be higher, potentially even reaching $1 and $10.
Given these factors, it is possible that the Goatseus Maximus could crash by 50% if the price fails to hold key support levels. However, if bullish sentiment from derivative traders and rising volatility (as indicated by ADX) push the price higher, the price could break resistance and head toward $1 or higher.
