Beam ($BEAM), a gaming-sector ecosystem token, has rallied 45.2% over the past 24 hours, accompanied by a 1,115% surge in daily trading volume. The asset, which carries a market capitalization of $241.6 million, has been trending higher since July.

Notably, the gains came while much of the cryptocurrency market panicked and sold following news of the Binance heist, in line with the broad risk-off responses that security incidents at major exchanges have historically triggered across digital assets. $BEAM's price surged across the board during the turmoil — a relative strength likely attributable to its pre-existing bullish momentum.

It was reported that the Beam Foundation had burned all of the $BEAM tokens in the possession of the Binance hacker. Token burns permanently remove supply from circulation, so the destruction forecloses any future sale of the stolen allocation on the open market — and, as an on-chain transaction, the burn can be independently verified by anyone. A total of 984.249 million tokens, worth approximately $3.37 million, were destroyed using the Gnosis Safe Burn Signature, a move that also helped explain the token's short-term bullish outlook.

Multi-Month Uptrend Continues

$BEAM flipped its market structure bullishly in June when it broke above the downtrend's lower high at $0.0016. The latest leg of bullish continuation came on the 30th, when the price breached the $0.00356 high set on 23rd October.

The breakout occurred on extraordinary volume, and gains were still accruing at the time of writing. Relative to the broader market, the latest bullish impulse move was highly noticeable, raising the likelihood that the altcoin may be overextended.

The relative strength index (RSI) on the daily chart stood at 82, once again in overbought territory. However, an overbought reading does not guarantee an immediate pullback: a stretch of overbought RSI readings earlier in October was accompanied by a 16.54% advance over ten days.

Traders' Call to Action: Take Profits and Wait for a Pullback

The 4-hour chart highlighted two support zones of interest. The first, at $0.00445, was respected over the past 24 hours as a demand zone, after which the altcoin moved to challenge the local highs at $0.0054. The second is the $0.0034 order block that initiated the most recent move higher.

Swing traders can consider taking profits and waiting for a pullback, or moving their trailing stop-loss order to just below $0.0034, depending on their preferred strategy. A pullback toward $0.0040 would likely provide a buying opportunity.

That said, without a clear sign of a short-term pullback, $BEAM swing traders need to wait and not rush to look for a re-entry.

Summary

$BEAM has been on an uptrend on the daily timeframe since June. Its latest impulse move higher has not yet settled into a pullback, and swing traders can choose to wait for a revisit of key demand zones before buying.

Source: CryptoNewsNet