Espresso (ESP) extended its strong upward momentum after breaking out from a lengthy consolidation range, signalling a notable shift in market sentiment. The token climbed more than 34% over the past 24 hours and gained over 42% during the last week.
Trading activity also accelerated sharply, highlighting stronger investor participation across both spot and derivatives markets. Although the rally paused after reaching an intraday peak near $0.121, market indicators continue to support a constructive outlook. Even so, traders now watch whether buyers can defend recent gains and maintain the current bullish structure.
ESP recently advanced from around $0.075 before touching an intraday high close to $0.121. The move lifted the token above its 20, 50, 100, and 200-day exponential moving averages. Consequently, the breakout confirmed a stronger short-term trend after weeks of sideways trading.
The current pullback toward $0.106 appears to reflect profit-taking instead of aggressive selling. Besides, price continues to trade above several important technical support zones.
The first support sits at $0.0960, matching the 0.618 Fibonacci retracement level. A break below this area could expose $0.0883, followed by stronger support near $0.0807.
On the upside, immediate resistance stands between $0.1090 and $0.1100. Buyers also continue watching the recent high at $0.1208. A decisive move above that level could open the door for another leg higher as bullish momentum strengthens.
However, traders should also monitor momentum indicators carefully. The Stochastic RSI remains above 80, suggesting the market has entered overbought territory. Therefore, brief consolidation or additional profit-taking may emerge before the next directional move develops.
Derivatives data also points to growing confidence among market participants. Open interest reached more than $25 million during April before declining steadily below $6 million by late June. That prolonged decline reflected weaker speculative demand and lower trading activity.
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However, July produced a notable reversal. Open interest surged to approximately $27.52 million while ESP traded around $0.11. Additionally, the sharp increase suggests fresh capital entered futures markets rather than existing traders simply rotating positions.
Rising open interest alongside higher prices often indicates stronger conviction behind an ongoing trend. Consequently, volatility could remain elevated if leveraged participation continues expanding.
Spot market activity presents another encouraging signal for ESP. Earlier this year, inflows exceeded $1.5 million during a sharp rally before heavy outflows followed as investors secured profits. Since then, both inflows and outflows gradually became more balanced, reflecting a calmer market environment.
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Recent data now shows modest positive netflows, including roughly $349,700 recorded on July 27. Moreover, sustained buying pressure could strengthen market sentiment if inflows continue exceeding outflows over the coming sessions.
Combined with improving derivatives activity and a technically strong price structure, ESP appears well positioned to challenge higher resistance levels while key support around $0.0960 remains intact.
Key levels remain critical as Espresso consolidates after its powerful breakout:
Upside levels: $0.1090–$0.1100 marks the first resistance zone, followed by the recent high at $0.1208. A decisive daily close above this barrier could accelerate buying momentum toward $0.1300 and $0.1450, as bullish sentiment strengthens.
Downside levels: Initial support sits at $0.0960, aligned with the 0.618 Fibonacci retracement. Additional support lies at $0.0883, followed by $0.0807, while the previous breakout area around $0.0712 remains the final level protecting the broader uptrend.
Momentum checkpoint: The Stochastic RSI remains in overbought territory above 80, signalling that short-term consolidation remains possible despite the prevailing bullish structure. Meanwhile, rising open interest and improving spot inflows continue to support the recovery.
Espresso’s near-term outlook depends on whether buyers can defend $0.0960 while building enough momentum to overcome the $0.1208 breakout barrier. Strong growth in open interest suggests fresh capital continues entering the market, while recent positive spot netflows indicate renewed accumulation.
If buying pressure persists, ESP could extend its rally toward $0.1300 and potentially $0.1450. However, losing $0.0883 would weaken the current bullish structure and increase the risk of a deeper retracement toward $0.0807.
