Journalist
Posted:
- Degen crypto rose above the psychological level of $0.02.
- The token could not defend this level during the retracement and could fall another 14%.
Epee [DEGEN] was successful in its attempt to break the local resistance zone at $0.012, which had been keeping the bulls at bay since early October. Degen’s crypto rally started at $0.0079 on November 8.
In just over four days, DEGEN rose 172% to reach a new local high of $0.0218 while Bitcoin [BTC] reached new all-time highs.
The $0.02 level has some historical significance, but the bulls were unable to defend this level as support.
How deep will DEGEN go back?
Source: DEGEN/USDT on TradingView
Degen crypto has been on an upward trend since October 1, when the local resistance zone at $0.0055 was decisively broken.
The bulls experienced some setbacks in the $0.0085 region but eventually regained the zone as support.
The recent rally came from this region and started at $0.0079 and went to $0.0218. The RSI was still in overbought territory, despite the pullback in recent hours.
An RSI above 70 does not in itself guarantee a retracement.
Contextually, Bitcoin’s $87,000 dip has led to a wave of profit-taking, but DEGEN is likely to go much higher. This is because the OBV has climbed past the June high of $0.0153.
The market structure has been solidly bullish and the next overhead targets are at $0.0255 and $0.0316, based on the Fibonacci levels plotted for the recent rally.
To the south, the $0.015 area is expected to be retested as support.
Will DEGEN crypto go to $0.012?
Is your portfolio green? View the DEGEN Profit Calculator
At the time of writing, a drop in the liquidity pool to $0.0117 seemed unlikely. Still, the cluster of liquidation levels there was strong, and the magnetic zone was able to pull DEGEN down.
Prices are attracted to liquidity, and a deeper dip for BTC would likely panic altco traders and force overextended positions to liquidate, driving prices down.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer