Analyzing DEGEN’s structure shift: Is it time for a new ATH?

DEGEN price action on the lower time frame suggest potential shift in dynamics.
DEGEN saw a spike in large on-chain inflows as funding rates stabilized.

As a seasoned crypto investor with battle-scarred fingers from countless trades, I have to admit that the recent DEGEN price action has piqued my interest. The asset’s 20% decline in the past week was certainly a blow, but its 6% surge in the last 24 hours has me intrigued.

Over the past week, DEGEN has experienced a 20% drop, but by the time of this report, it sparked renewed optimism due to a 6% increase over the previous 24 hours.

Lately, the asset has bounced back from a significant area of buyer support, suggesting robust demand for purchases at lower costs. This upswing has placed DEGEN at a crucial point, close to a recognized region of resistance.

The examination showed that DEGEN was attempting to overcome a barrier of resistance, doing so would suggest a robust upward momentum. This indicated a definite breakthrough at $0.023, implying the possibility of further increases.

As the price spiked, there was a simultaneous rise in trading activity, suggesting a positive trend that could potentially lead to more growth if the price continues to hold above the significant resistance level.

The general mood in the market seemed positive as DEGEN looked poised to reach new peaks, with objectives established at and beyond the $0.072 price point.

In simpler terms, if DEGEN manages to maintain its position above a significant barrier (resistance), this barrier could then function as a foundation for future gains, indicating a potentially positive trend (bullish outcome).

DEGEN large inflow

This month, DEGEN saw an increase of numerous big investors, as shown by the on-chain data graph. During the initial weeks of November, the flow of these tokens increased noticeably, peaking at its highest point.

During this timeframe, an influx occurred, which corresponded with a significant rise in DEGEN’s market value. This rise seems to indicate that major investors were buying up positions and building their portfolios during this specific period.

It’s quite evident from the graph that as the influx grew, the price of DEGEN also rose, reaching its maximum point when the influx was at its zenith, suggesting the possibility of a fresh All-Time High (ATH).

Subsequently, even with persistent large investor involvement, the price started to drop gradually, suggesting that the initial large influx of funds fueling price growth could no longer maintain its upward trend.

As an analyst, I’ve noticed a significant correlation between hefty investments and the shifting tides within the cryptocurrency market. Specifically, I’ve observed that these investments can exert a considerable influence over short-term price fluctuations.

During the given timeframe, the relationship between significant investors’ actions and price fluctuations offered a striking understanding of the speculative characteristics within the DEGEN market.

Open interest and funding rates

The funding rate and its fluctuations associated with the DEGEN OI have shown a striking connection, particularly evident from November’s early to mid period.

In this timeframe, when the funding rate occasionally dropped, the DEGEN’s price saw substantial surges, suggesting that traders could be buying in advance, expecting an upward trend in prices.

Remarkably, when the funding rate hit its maximum this month, the price of DEGEN surged to $0.03, increasing the chances of setting a new all-time high (ATH).

This pattern might indicate that instances of reduced or even negative funding rates could present valuable purchasing chances for traders aiming for swift profits, as it may reflect a generally optimistic outlook among traders regarding DEGEN.

This data gave essential understanding about traders’ actions and the overall market mood, suggesting possible tactics for making well-timed entries and exits in the market.

2024-11-23 03:04

DEGEN large inflow

Open interest and funding rates

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