- Degen crypto rallied beyond the psychological level of $0.02.
- The token was unable to defend this level during the retracement, and could fall another 14%.
As a seasoned crypto investor with a knack for spotting promising tokens and navigating market volatility, I’ve seen my fair share of rallies and corrections. The recent surge in DEGEN, breaking the psychological barrier at $0.02, was an exciting development indeed. However, the subsequent retracement has me slightly concerned.
Degen managed to overcome the obstacle at $0.012 in its advance, an area that has been a barrier for the bulls since early October. The surge in the value of Degen’s crypto began on November 8th at $0.0079.
Over the span of approximately four days, DEGEN experienced an impressive surge of approximately 172%, hitting a fresh peak of $0.0218 at local markets. Simultaneously, Bitcoin [BTC] established new record highs.
At the $0.02 mark, there’s a certain historical importance, yet the bullish side failed to maintain it as a defensive line.
How deep will DEGEN retrace?
Since the first of October, Degen crypto’s price has been on an upward trajectory following a significant break above the resistance level of around $0.0055.
In simpler terms, the bulls faced resistance at the $0.0085 area, but they managed to turn it into a supportive region later on.
The recent rally originated from this region, starting at $0.0079 and going to $0.0218. The RSI was still in overbought territory despite the pullback in recent hours.
The RSI being above 70 does not guarantee a retracement by itself.
In light of the recent drop in Bitcoin’s price from around $87k, there’s been a surge of people cashing out their profits. However, given that the On-Balance Volume (OBV) has surpassed its peak from June, when the price was just $0.0153, it seems likely that DEGEN could reach even greater heights in the future.
The current market trend appears strongly optimistic, with potential future milestones around $0.0255 and $0.0316 according to Fibonacci measurements during our latest surge.
To the south, the $0.015 area is expected to be retested as support.
Will DEGEN crypto move to $0.012?
As of now, a decrease to the liquidity pool at $0.0117 seems improbable. However, the concentration of liquidation points in that area is strong, and it could potentially attract DEGEN towards itself.
In simpler terms, the price of Bitcoin (BTC) tends to move towards areas with more activity, or liquidity. If BTC experiences a significant drop, it might cause fear among altcoin traders, leading them to sell off their positions quickly. This mass selling could lead to over-leveraged positions being forced out, which in turn drives the prices of altcoins even lower.
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2024-11-14 07:35