DIA, the native token of the decentralized oracle protocol DIA, rallied over 25% as smart money investors showed renewed interest in the asset.
Summary
- DIA price jumped more than 30% today as smart money investors increased their holdings.
- Based on technical indicators, DIA may see bearish price action in the short-term.
According to data from crypto.news Dia (DIA) rallied as high as 29% to an intraday high of $0.84 on Tuesday, Aug. 26, afternoon Asian time before settling at $0.76 as of press time. The rebound comes after weeks of a downtrend that still leaves the asset’s price down 18.7% as of press time.
DIA’s rally today came primarily on the back of renewed demand from smart money investors. Data from Nansen shows that the balances held by these wallets have increased by over 40% in the past 24 hours.
A surge in smart money accumulation can typically drive retail interest, as traders view it as a sign of growing confidence in the token, which in turn can support further price appreciation.
The renewed demand from smart money follows DIA’s recent announcement of its partnership with Units.Network, a cross-chain liquidity infrastructure.
In a Aug. 25 X announcement, Dia revealed it has officially integrated its verifiable oracle infrastructure into Units.Network, enabling developers to access transparent, high-quality price feeds for building robust DeFi applications.
As for DIA, the partnership enhances the utility of its ecosystem and also benefits from increased demand for its tokens through staking and validator incentives tied to oracle usage.
Notably, third-party data also show that the balance held by exchanges has dropped from 85.6 million to 81.21 million tokens. Such a drop means there are fewer tokens left to sell, which can help push the price up if demand stays strong.
Despite these bullish catalysts, which could potentially support DIA’s price, technical indicators suggest a murky outlook.
Notably, the 20-day simple moving average appears poised to cross below the 50-day SMA. Such a crossover is typically interpreted as a bearish signal, indicating that short-term momentum is weakening relative to the medium-term trend.
Additionally, the Aroon indicator reinforces the bearish bias. The Aroon Down is currently at 92.86%, while the Aroon Up sits at 0%. This combination implies that a recent high was recorded a long time ago, while a recent low occurred very recently, often indicative of a prevailing downtrend with little bullish strength.
However, DIA has been trading within a falling wedge pattern since late July. This pattern is generally considered bullish, as it often precedes a trend reversal when confirmed by a breakout above the upper trendline.
A successful breakout would invalidate the current downtrend and could open the door for a rally toward the $1 psychological resistance level.
However, if there is no breakout, the next support level is around $0.66, which is about 13% below the current price and lines up with the 38.2% Fibonacci retracement level, making it a possible short-term target.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
