TURBO rises to 3-month high, but the indicator hints at a pullback - why?

Turbo [TURBO] has experienced strong gains over the past 24 hours, hitting a three-month high of $0.0059.

Since then, the memecoin has retreated slightly.

In fact, at the time of writing, TURBO is trading at $0.00553 — still recording a 23% daily gain.

Over the same period, the altcoin’s trading volume surged 123.5% to $352.4 million, while open interest grew 30% to a year-to-date high of $72 million.

Since April 22, TURBO has surged more than 172% and now has a market cap of $370 million. With such a huge increase, one can’t help but wonder: what exactly is driving this upward trend?

According to observations, strengthening fundamentals are a factor driving this upward trend as active addresses surge.

Looking at the price DAA divergence, the number of active addresses has risen strongly, reaching a weekly high of 2.5k.

Of course, the price DAA divergence has remained in positive territory throughout the week, which indicates that network activity is growing faster than the price.

Typically, a growing user base indicates that there is organic demand, not just speculative hype.

Historically, real demand paves the way for sustained gains rather than short-lived ones.

Can TURBO sustain its upward trend?

While TURBO’s fundamentals are strengthening, activity on exchanges indicates that investors are not convinced and are therefore actively taking profits.

As a result, exchange flow balances have remained in positive territory throughout the week, reaching a high of 166 million tokens.

Over the past 24 hours, exchange flow balances reached 34.1 million. This means that exchange net flow is positive, and deposits are outnumbering withdrawals.

Furthermore, the futures market reflects bearish sentiment, with most traders shorting TURBO.

An analysis of memecoin long/short data shows that 52% of futures contracts are short, while 47% are long.

The dominance of short positions indicates that many investors are bearish and expect the price to fall after the recent rally.

What’s next for AI-memecoin?

According to the analysis, TURBO is experiencing short-term upside momentum as speculative buyers dominate the market.

The RSI has entered the overbought zone at 82.68, indicating excessive buying pressure.

Although the bullish momentum continues, it seems increasingly difficult to sustain, which means that the risk of a pullback in the short term is increasing as the rally fades.

Based on these conditions, TURBO could face a pullback as sellers are active on exchanges and the price is overheated.

If a pullback occurs, we could see a retracement to $0.00498. However, if the short-term gains are sustained with the support of speculators in the market, memecoin could reach $0.0064 before a pullback.