Tensor (TNSR) big pump 170%! Unclosed contracts flipped 9 times, breaking the trend line to reach 0.21 US dollars.

The price of Tensor (TNSR) has surged 170% in the past 24 hours, shocking the market, temporarily reported at $0.2196 on November 21, indicating a strong bullish trend reversal. Open interest has skyrocketed by 959%, confirming significant exposure from traders. On the daily chart, TNSR has broken through its descending channel pattern, which is seen as a bullish reversal signal.

Breakthrough of the descending channel opens a new bullish cycle

(Source: Trading View)

On the daily chart, Tensor (TNSR) has broken out of its descending channel pattern, which is considered a bullish reversal signal. The cryptocurrency has shown two long green candles, and the current trading price is 0.21 USD. This breakout is significant in technical analysis, as the descending channel represents a long-term bearish trend, and breaking out of the channel means that the selling pressure has exhausted, with buying pressure beginning to take control.

The formation of a descending channel usually takes weeks or even months, with prices oscillating downward within the channel, creating a series of lower highs and lower lows. Tensor (TNSR) has been in this descending channel for the past few weeks, with prices continuously declining from their peak. However, the pump on November 21 completely changed this pattern, as the price not only broke through the upper boundary of the channel but also surged away from the channel area with a massive increase of 170%.

The appearance of two long green candles strengthens the validity of the breakout. In technical analysis, a single candle breakout may be a false breakout, but two consecutive strong bullish candles combined with huge trading volume usually confirm the authenticity of the breakout. This price action indicates that buying interest is extremely high, and market confidence in Tensor (TNSR) is rapidly recovering.

From the perspective of trading volume analysis, the trading volume at the time of the breakout reached 259 million USD, a figure that far exceeds TNSR's daily trading volume. A high volume breakout is one of the most reliable signals in technical analysis, as it indicates that a large amount of real capital is driving the price up, rather than just speculative behavior from a few traders. This kind of volume breakout often sustains itself, as new buyers entering the market will provide support during pullbacks.

In addition, the Bull-Bear Power (BBP) indicates that buyers dominate the market, with TNSR shifting from negative territory to positive territory. As of the time of writing, the BBP index is 0.092, suggesting that bullish sentiment may persist, pushing prices towards higher resistance levels. The shift of BBP from negative to positive is an important trend reversal signal, indicating that the balance of market power has shifted from sellers to buyers.

Open Interest Soars 959%, Traders Betting Big

(Source: Coinglass)

By analyzing on-chain data, the derivative product data of Tensor (TNSR) further strengthens this bullish momentum. For reference, the open interest (OI) has skyrocketed by an astonishing 959.74%, indicating that traders are actively increasing their holdings in the token. This figure is extremely impressive, approaching a 10-fold increase, showing that a large amount of new capital is flowing into the futures and perpetual contract market for TNSR.

Typically, an increase in open interest (OI) is synchronized with a price rise, which reinforces this trend. Therefore, if OI continues to rise and the price of Tensor cryptocurrency maintains an upward momentum, its market capitalization may further increase. A surge in open interest means that traders are not only buying in the spot market but are also amplifying their exposure through the futures market, a behavior that usually occurs when confidence in a particular asset is rising rapidly.

However, it is important to note that the rapid growth of open contracts also brings risks. If the price suddenly reverses, a large number of leveraged long positions may face a chain liquidation, triggering a waterfall decline. Therefore, although the 959% increase in OI is a bullish signal, it also requires investors to remain vigilant and set reasonable stop-losses.

On the 4-hour chart, the momentum oscillator has consistently displayed green bars. This confirms that the bullish momentum of the Tensor cryptocurrency price is accelerating. This trend typically indicates strong market confidence and often occurs in the early stages of trend reversals or parabolic markets. The sustained green readings of the momentum oscillator show that the buying strength in each time period is increasing, which is a characteristic of a healthy bullish trend.

RSI Overbought and DMI Shows Strong Buying Pressure Dominating

The Relative Strength Index (RSI) also reinforces this view, with TNSR having broken through the overbought zone, currently at 84.58. This indicates strong buying pressure. However, it also suggests that market volatility will increase and a correction may occur. An RSI above 70 is typically seen as the overbought area, and a reading of 84.58 is already deeply overbought. Such extreme readings occur in two scenarios: either an excessive accumulation of buying needs to be digested in the short term, or the trend is extremely strong, allowing overbought conditions to persist.

Historically, when the RSI breaks through important resistance levels and enters the overbought zone, it often indicates that a strong bullish trend has just begun. Although there may be a technical pullback in the short term, as long as the RSI remains above 50, the upward trend will not change. For Tensor (TNSR), the current overbought condition is more likely a reflection of a strong trend rather than a top signal.

Moreover, the Directional Movement Index (DMI) has also reinforced this upward trend. The positive DMI has surged to 52.70, significantly surpassing the negative DMI of 12.07, indicating that buyers currently dominate the market. The DMI indicator measures the direction and strength of price trends, and when the positive DMI exceeds the negative DMI, it signifies that the upward momentum far outweighs the downward pressure. When the positive DMI surpasses 50, it typically marks a strong bullish trend, while a negative DMI below 15 indicates that sellers are struggling to respond.

Due to sellers' difficulty in reacting, the price of Tensor (TNSR) may have further room for a pump. Additionally, the Average Directional Index (ADX) further confirms this trend. As of the time of writing, the ADX reading is 45.06, indicating that the price of TNSR may continue to rise. The ADX measures the strength of a trend, with values above 25 indicating a strong trend and above 40 indicating a very strong trend. The current reading of 45.06 confirms that Tensor (TNSR) is in a strong bullish trend.

Multiple technical indicators confirm bullish

RSI 84.58: Deeply overbought but the trend is strong

Positive DMI 52.70: Buyer strength dominates

Negative DMI 12.07: Sellers' counterattack is weak

ADX 45.06: Trend strength is extremely high

Momentum Oscillator: Continuous green bars, accelerating upward

The synchronous confirmation of these indicators significantly increases the probability of the upward trend continuing. When multiple different types of technical indicators (momentum, trend, overbought/oversold) point in the same direction simultaneously, the reliability of the signals is significantly enhanced.

Fibonacci Targets and Risk Warning

(Source: Trading View)

Fibonacci retracement is a widely used tool in technical analysis, based on the observation that prices often find support or resistance at specific ratios. 0.786 and 0.382 are important Fibonacci levels. Breaking through 0.786 means that Tensor (TNSR) has recovered most of the decline, while the 0.382 level is typically a target for a strong rebound.

$0.17 is close to the historical high from May, and this price range may experience significant profit-taking pressure. Many investors who were trapped at high levels may choose to exit when the price approaches their cost, creating resistance. Therefore, after TNSR broke through the upward path from $0.13 to $0.17 on November 21, investors should expect a possible brief pullback and consolidation.

However, if the price of TNSR fails to maintain its upward momentum, the cryptocurrency may experience a pullback. In this case, the altcoin could test the support level around 0.078 USD. This support level is the lower boundary of the previously broken descending channel and is also a key area from the earlier consolidation. If it pulls back to this level and gains support, it will confirm the validity of the breakout, accumulating momentum for the next wave of bullish.