Over the past couple of weeks, Degen [DEGEN] has experienced a remarkable surge in its value, marking a significant milestone for the unofficial token. What initially started as a memecoin on the Base network has now grown to boast a market capitalization of $124.6 million.
Despite a slight 28% decline from its peak on the 14th of October, the token still managed to register an impressive 128.5% increase in value for the month.
Current Retracement Phase for DEGEN Crypto
An interesting trend appeared on the 4-hour chart on Tuesday the 15th of October, signifying a bearish shift in the market structure. This potential transition from a previously bullish trend to a short-term bearish phase indicates an ongoing retracement period for DEGEN.
While the RSI dipped below the neutral threshold of 50, suggesting momentum favoring sellers, the OBV didn’t quite align with this narrative. Notably, the recent selling activity that led to an approximate 25% correction lacked significant volume support.
Looking at the Fibonacci retracement levels, key support zones were identified. With the decreased selling pressure, the 50% level around $0.0796 is likely to act as a solid support level and drive prices upwards.
Positive Sentiment Post Recent Gains
Social volume surrounding DEGEN spiked notably on the 2nd of October, although it has tapered off slightly since then. Concurrently, the Weighted Sentiment has also displayed a slightly bullish tone, reflecting optimistic expectations among social media users.
Further validating this optimism, the Open Interest data from Coinglass indicated a rise in OI alongside the surge in prices, underscoring a bullish sentiment in the derivatives market.
While DEGEN’s OI experienced a dip during the New York open amidst Bitcoin [BTC] volatility, signs of a potential recovery remained promising.
Disclaimer: The views expressed in this article are solely the author’s opinion and do not constitute financial, investment, or trading advice.