Gnosis [GNO] experienced massive upside momentum after breaking out of its consolidation range. The altcoin reached a monthly high of $141 before retracing slightly.
As of this writing, GNO traded around $114, up 15.2% on the daily chart. The rally was backed by a 1,725% surge in Trading Volume, which reached $15.6 million.
In fact, Turnover jumped to a monthly high of $1.4 million, according to CoinAnk. Rising Turnover alongside price indicated stronger buying interest.
Gnosis’ Market Cap also climbed over 17% to more than $300 million. This pushed GNO into CoinMarketCap’s top 100 cryptocurrencies.
Why are retail traders buying Gnosis?
GNO’s rally appeared mostly driven by returning retail demand. Spot Average Order Size recorded retail-sized orders in the Spot market.
Retail traders and whales had recently stepped away. However, retail orders returned on the 18th of August.
Spot Average Order Size identifies order size rather than trade direction. Even so, Spot Taker CVD showed buyer dominance during this period.
Together, these metrics suggested that returning retail traders were mostly accumulating GNO.
Can retail demand sustain Gnosis’ rally?
Strong demand pushed Gnosis above its short-term SMAs, while the MACD reflected growing upside momentum. At the same time, the Relative Strength Index (RSI) made a bullish crossover and rose to 67.
At this level, the RSI reflected strong market demand and substantial buyer control.
Historically, strong demand has preceded major upside price moves.
Therefore, sustained retail and whale demand could help Gnosis target the immediate resistance at $126. However, the bullish outlook requires a daily close above $116, which marks the long-term Moving Average.
Failure to close above $116, alongside increased profit-taking, could send GNO back toward $104.
