Maple Finance's SYRUP Token Retreats 23% After 98% Rally

Maple Finance's SYRUP token has experienced a notable retracement, pulling back to $0.5. This movement comes after a period of steady uptrend over the past six weeks, during which the token rallied 98%, rising from $0.331 to $0.658 in June before the recent decline. The retracement is attributed to weak selling volume, which has led to a bearish outlook on lower timeframes.

On the 1-day chart, SYRUP maintains a strongly bullish bias. Key support levels at $0.494 and $0.45 have been identified as crucial for the continuation of the uptrend. These levels were plotted based on the most recent impulse move higher and are essential for defending against further declines. Additionally, a fair value gap (FVG) left behind during the swift surge higher is likely to act as a demand zone, with confluence at the 50% and 61.8% retracement levels suggesting that the current retracement could end at $0.5.

The technical indicators also support a bullish outlook. The On-Balance Volume (OBV) has not broken its uptrend, indicating buyer dominance. The Relative Strength Index (RSI) remains above the neutral 50 mark, reflecting that bullish momentum is intact. These indicators suggest that the current retracement may present an opportunity for traders to enter the market at a more favorable price point.

However, the 4-hour chart reflects a bearish market structure and downward momentum in recent days. The break of the low at $0.556 represents a bearish structure break, leading to a move downward. Traders looking to buy SYRUP need to wait for the price to make higher lows, which would indicate that bearish pressure is weakening. A higher high thereafter would represent a bullish structure break, providing a potential entry point for traders.

The 2-week liquidation heatmap highlights 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 is ready to resume its uptrend. This suggests that the current retracement may be a temporary setback, and the token could be poised for further gains in the near future.