SIREN flips bearish: Engulfing pattern signals deeper downside risk

siren [SIREN] has been one of the crypto market’s standout performers, posting gains across multiple fronts. However, sentiment turned on the 17th of April after a clear bearish signal pushed prices lower and disrupted the asset’s upward trajectory. Despite maintaining a 928% gain on a year-to-date basis, buying pressure has weakened in recent weeks. Over the past month, SIREN has declined by 20.7%, with price action now showing signs that downside momentum could intensify. Bears take control of the price The formation of a bearish engulfing candlestick marks a critical shift in market structure, suggesting that sellers have overtaken buyers. This pattern forms when a red candlestick fully engulfs the previous green candle’s range, often signaling the start of a downward move. In SIREN’s case, the setup strengthens the argument that bullish momentum has faded. Price has now retreated into a key support zone between $0.76 and $0.64. This range previously underpinned SIREN’s rally in March 2026, when the asset drew significant market attention. It also served as a launch point for a rebound on the 16th of April, reinforcing its importance in the current structure. If SIREN fails to hold this level, the downside risk becomes more pronounced. A breakdown could expose the double-bottom region near $0.13—a known liquidity zone where price previously consolidated. Momentum indicators weaken Technical indicators further support the bearish outlook, particularly the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). The RSI, which measures the speed and magnitude of price movements, has slipped below the neutral 50 level into bearish territory. This shift typically reflects growing selling pressure. Currently hovering around 49, the RSI suggests a loss of momentum rather than outright panic selling. However, a decisive move lower could confirm a deeper bearish phase. The MACD also points to weakening momentum. Its histogram shows diminishing buying strength, with bars fading from deep green to lighter shades while contracting in size. At the same time, a developing bearish crossover—where the MACD line drops below the signal line and approaches negative territory—indicates that a broader downtrend may be forming. Spot demand shows cracks On-chain spot flow data underscores the weakening demand environment. Capital inflows have declined across multiple time frames, reflecting reduced market participation. Over the past seven days, SIREN recorded approximately $1.40 million in inflows. However, this figure dropped to $362,910 over a 10-day period. Over 15 days, flows turned negative, with net outflows of $46,720. These figures point to a market that remains cautious. While the last 24 hours saw spot purchases of $818,920, such inflows may prove insufficient to reverse the broader trend. If selling pressure persists, SIREN could struggle to regain upward momentum in the near term. Final Summary A bearish engulfing candlestick has emerged, pointing to a potential shift in momentum. Weak spot inflows highlight softening demand, even as the possibility of a rebound remains.