Breaking through the resistance zone at $0.012, Degen [DEGEN] has achieved significant success after being held back by this level since early October. The rally of Degen crypto commenced on the 8th of November from $0.0079.
In a span of just over four days, DEGEN witnessed a remarkable surge of 172%, reaching a new high of $0.0218 while Bitcoin [BTC] was setting new all-time records.
Although the $0.02 level holds historical importance, it couldn’t be maintained as a support by the bulls.
What’s the Expected Retracement for DEGEN?
Degen crypto has been on an upward trend since the beginning of October when it decisively broke the resistance zone at $0.0055.
Initially facing resistance around $0.0085, the bulls eventually turned this level into a supportive zone.
The recent rally, starting from $0.0079 and reaching $0.0218, originated from this support region. Despite a recent pullback, the RSI still indicates an overbought market.
An RSI above 70 doesn’t necessarily imply an imminent retracement.
In the current landscape, while Bitcoin’s retracement from $87k led to profit-taking, DEGEN is poised to move higher, reflected by the OBV surpassing the June peak at $0.0153.
The market outlook is strongly bullish, with overhead targets set at $0.0255 and $0.0316 based on Fibonacci levels from the recent rally.
On the downside, a retest of the $0.015 level is anticipated as a potential support.
Is a Move towards $0.012 in DEGEN Crypto Likely?
Currently, a drop to the liquidity pool at $0.0117 seems improbable. However, the concentration of liquidation zones could exert a pulling force on DEGEN towards this level.
Price movements are often drawn to liquidity areas, and a deeper decline in BTC could trigger panic among altcoin traders, leading to liquidation of over-leveraged positions and subsequent further price drops.
Disclaimer: The opinions expressed in this content are personal views and do not constitute financial or investment advice.