Degen crypto rises 172% in 5 days, but THIS could send prices plummeting

• Degen crypto rose above the psychological degree of $0.02.
• The token couldn’t defend this degree in the course of the retracement and will fall one other 14%.

Epee [DEGEN] was profitable in its try to interrupt the native resistance zone at $0.012, which had been conserving the bulls at bay since early October. Degen’s crypto rally began at $0.0079 on November 8.

In simply over 4 days, DEGEN rose 172% to achieve a brand new native excessive of $0.0218 whereas Bitcoin [BTC] reached new all-time highs.

The $0.02 degree has some historic significance, however the bulls have been unable to defend this degree as assist.

How deep will DEGEN return?

Supply: DEGEN/USDT on TradingView

Degen crypto has been on an upward pattern since October 1, when the native resistance zone at $0.0055 was decisively damaged.

The bulls skilled some setbacks within the $0.0085 area however finally regained the zone as assist.

The latest rally got here from this area and began at $0.0079 and went to $0.0218. The RSI was nonetheless in overbought territory, regardless of the pullback in latest hours.

An RSI above 70 doesn’t in itself assure a retracement.

Contextually, Bitcoin’s $87,000 dip has led to a wave of profit-taking, however DEGEN is more likely to go a lot larger. It is because the OBV has climbed previous the June excessive of $0.0153.

The market construction has been solidly bullish and the following overhead targets are at $0.0255 and $0.0316, based mostly on the Fibonacci ranges plotted for the latest rally.

To the south, the $0.015 space is predicted to be retested as assist.

Will DEGEN crypto go to $0.012?

Supply: Mint glass

Is your portfolio inexperienced? View the DEGEN Revenue Calculator

On the time of writing, a drop within the liquidity pool to $0.0117 appeared unlikely. Nonetheless, the cluster of liquidation ranges there was robust, and the magnetic zone was capable of pull DEGEN down.

Costs are interested in liquidity, and a deeper dip for BTC would seemingly panic altco merchants and drive overextended positions to liquidate, driving costs down.

Disclaimer: The data offered doesn’t represent monetary recommendation, funding recommendation, buying and selling recommendation or every other type of recommendation and is solely the opinion of the author