eCash (XEC/USD) price has done well in the past three days, becoming the best-performing cryptocurrency this week. The coin has risen in the past three days and is now hovering near its highest level since October last year. In all, it has soared by more than 124% from its lowest point in June.

It is unclear why eCash price went vertical. A likely reason is that the coin’s trading volume jumped in the past few days. Data compiled by CoinMarketCap shows that the volume of XEC traded in the past 24 hours was over $1 billion. This is a big increase since the coin has a market cap of over $862 million. It is the 11th most active cryptocurrency. 

A closer look shows that most of the eCash traders are probably from South Korea. The volume in Upbit, one of the most popular South Korean exchanges, was over $900 million while Binance handled over $100 million. 

Therefore, there is a likelihood that the coin is being manipulated through what is known as a pump-and-dump scheme. Besides, there has been no major market news about eCash and XEC. Also, the volume in other popular exchanges has remained stubbornly low.

The daily chart shows that the XEC price went parabolic in the past few days. It has risen in the past three straight days and is now hovering near the highest level in months. The coin has moved above all moving averages. While volume is higher than its historical average, there are signs that it is fading.

The Relative Strength Index (RSI) and other technical oscillators have moved to the overbought level. Therefore, since there is no major eCash news, and since most of this volume is coming from a single exchange, there is a likelihood that this rally will not hold. 

As such, I suspect that the coin will retreat sharply in the coming days as the momentum fades. If this happens, the next important support level to watch will be at $0.000032, which is about 25% below the current level.

On the other hand, a move above this week’s high of $0.000045 will signal that there are still more buyers in the market.

The post eCash (XEC) price has gone parabolic but something smells fishy appeared first on Invezz.

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