Akash Network (AKT) Surges 27% in One Day, Is It Safe to Chase?

▲ Akash Network (AKT)/Source: X

While the virtual asset market is consolidating without finding a clear direction, a specific altcoin has surged by over 27% in one day, accompanied by explosive trading volume, drawing the attention of investors. This is a typical "herding phenomenon" where speculative funds, aiming for short-term gains, pour in without clear fundamental catalysts, requiring extreme caution against hasty follow-up buying.

According to CoinMarketCap, a cryptocurrency market data aggregator, Akash Network (AKT) has surged by 27.16% over the past 24 hours, trading at $0.652 as of May 3 (local time). This figure significantly surpasses the return of Bitcoin (BTC), the market leader, which only rose by 0.75% during the same period. The biggest driving force behind this rally is not fundamental factors like ecosystem growth, but rather speculative trading volume, which skyrocketed by an astonishing 1,477% to reach $57.9 million.

Currently, the virtual asset market maintains a neutral status with a Fear & Greed Index of 45, and Bitcoin's market dominance also remains at a stable level. However, despite the overall market consolidation, a clear "rotation play" is emerging, where capital chasing high returns rapidly shifts to some small and medium-sized altcoins. CoinMarketCap's Altcoin Season Index is 39, indicating a mixed market favorable for speculative capital activity. The surges of TRUMPTOPIA by 909% and LABUBU by 154% clearly support this trend of niche capital movement.

Experts point out that Akash Network's current price movement relies entirely on the psychology of traders chasing high-risk, high-return opportunities and the inflow of funds. While a strong upward trend is confirmed as it has entered an overbought zone in the short term, the buying momentum is overheated, placing it on a precarious foundation where a sudden sharp decline could occur if liquidity dries up.

The short-term price direction depends on whether it can break through the recent high resistance level of $0.70. If massive trading volume and buying pressure continue, it will test this resistance level and aim for further gains. However, if the key support level of $0.60 breaks, the situation will reverse sharply. In case of a support level collapse, profit-taking sell-offs could flood the market, risking a rapid drop to the $0.55 range.

In conclusion, this surge is a typical example of altcoin momentum chasing without underlying substance. To defend the current high price, a 24-hour trading volume of at least $30 million must be consistently maintained. If the trading volume plummets below $15 million, there is a high probability of a strong correction, thus requiring cautious approach from market participants.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*