Bitcoin Cash (BCH) Sees a Strong Rally as Bullish Momentum Builds

• BCH surges 10%, fueled by growing bullish interest and speculation.
• Futures activity spikes, signaling increased confidence in Bitcoin Cash.
• Cashinals launch boosts BCH, sparking hopes for future network growth.

Bitcoin Cash (BCH) experienced a significant surge, climbing nearly 10% over the past 24 hours to around $587, outpacing much of the broader cryptocurrency market. This rally marks one of its strongest daily performances in over a week, indicating growing bullish interest.

According to on-chain and derivatives data, the increased price movement is fueled by rising investor optimism. Data from CoinGlass reveals that BCH futures open interest surged by 18% in just 24 hours, reaching $773.29 million. This sharp increase reflects a rise in capital exposure as traders adopt a more risk-on stance.

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Futures and Funding Rate Point to Growing Bullish Sentiment

Alongside the increase in open interest, the funding rate for BCH futures has turned positive. After standing at -0.154% earlier in the day, the open interest-weighted funding rate flipped to 0.0016%. This shift suggests a growing confidence among traders, as the market moves into a more bullish position.

Large wallet activity has also contributed to the rising momentum. On-chain data shows that a long-dormant wallet, possibly linked to early crypto investor Erik Voorhees, has been rebalancing its holdings. The wallet recently exchanged over 4,600 ETH, valued at around $13.4 million, for nearly 25,000 BCH. This move has sparked speculation that some investors are rotating capital into BCH as it offers lower transaction fees compared to Bitcoin.

Cashinals Launch Adds Fuel to BCH’s Momentum

BCH’s positive performance has been further bolstered by the recent launch of Cashinals on December 18. The new protocol, similar to Bitcoin’s Ordinals, enables users to create and trade NFTs on the Bitcoin Cash network. The rollout of Cashinals has sparked increased network activity, with expectations that it will drive speculative interest in BCH, just as Ordinals did for Bitcoin earlier this year.

Resistance Ahead: Will BCH Break Through Key Levels?

Despite the strong rally, BCH is approaching a crucial resistance zone. Analysts suggest that a strong sell-wall lies around $615, a level that could prove difficult to break through.

If BCH manages to surpass this resistance, the next target could be around $640. On the downside, a drop below $528 would likely signal a shift back toward consolidation, dampening the current bullish outlook.

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