Core (CORE) experienced a remarkable surge of 33% in just 11 hours, jumping from $0.39 on March 29th to $0.52 on March 30th. This dramatic price increase attracted the attention of many speculative traders, leading to a sharp rise in trading volume. According to data from Coinalyze, Open Interest in CORE rose by 116% in the past 24 hours, signaling heightened interest in the token. However, while the surge seems impressive, traders should be cautious as the higher timeframe charts remain bearish, and several warning signs suggest that the rally might not last.

The Bearish Outlook

Despite the 33% rally, the longer-term charts for CORE remain bearish. On the 1-day chart, the price recently retested the $0.4775 resistance level. This level, which previously acted as support in both February 2024 and earlier this year, is now acting as a significant barrier. The fact that the price encountered resistance at this level raises concerns about a potential downturn in the coming days.

The surge in volume over the weekend, while noteworthy, is not enough to change the overall trend. Although the On-Balance Volume (OBV) indicator surged toward its December highs, suggesting stronger buying activity, this could also be the result of a liquidity hunt. The Relative Strength Index (RSI) is also nearing neutral 50, indicating a shift in momentum, but it does not necessarily signal the start of a new uptrend.

The higher timeframe trend should not be overlooked. While the recent rally might have excited some traders, it is important to remain cautious, as the underlying trend still favors a downward move. Therefore, investors should avoid giving in to the fear of missing out (FOMO) and approach this rally with a healthy dose of skepticism.

Key Resistance and Support Levels

On the 4-hour chart, CORE showed a clean rejection from a bearish order block around $0.52, a level that has repeatedly acted as resistance in recent weeks. After this rejection, the price is now retesting the $0.4775 level as support. However, there is a risk that this support may not hold, especially considering the rapid price action over the weekend, a period when trading volumes are generally lower and price movements can be more volatile.

If the price breaks below the $0.4775 support level, the next key support to watch would be around $0.378. This level could act as a safety net for the price, but it also opens the possibility of further downside. A break below this level could lead to more significant losses for traders caught in the rally.

Liquidation Heatmap and Volatility

The CORE liquidation heatmap has highlighted the $0.52-$0.53 zone as a major area of interest. Over the past month, this region has been a “magnetic” zone where short liquidations have occurred. The recent surge in price saw this liquidity pocket swept, but a stronger zone filled with short liquidations has now formed around the $0.52 level.

This means that CORE may experience increased volatility in the coming days as market participants battle for control of this price zone. A retest of the $0.52-$0.53 range could present an opportunity for traders to short-sell the token, capitalizing on the potential for a price correction.

Conclusion

CORE’s 33% surge over 11 hours has caught the attention of traders, but the underlying trend remains bearish. While the short-term price action has been exciting, there are several factors that suggest the rally may not be sustainable. The resistance at $0.52, combined with the high likelihood of further volatility, makes this a risky time for traders to jump in.

For now, the best approach may be to monitor the price action closely, paying attention to key support and resistance levels. Traders should be cautious of FOMO and remain aware that the broader market conditions could lead to a quick reversal. The coming days will likely be crucial in determining whether this rally can turn into a longer-term uptrend or if it will fizzle out.