- DEGEN surged 172% in five days, reaching $0.0218 amidst Bitcoin’s record highs.
- The $0.02 level failed as support, raising concerns about a potential pullback.
- Key support lies at $0.015; further gains target Fibonacci levels at $0.0255 and $0.0316.
Degen crypto skyrocketed by 172% in just five days. Starting at $0.0079 on November 8th, the price quickly reached $0.0218. This surge came as Bitcoin hit new all-time highs. However, despite the excitement, the $0.02 level couldn’t hold. As the dust settles, traders need to consider the risks of a potential pullback.
A Powerful Rally with Growing Risks
Degen broke through the $0.012 resistance zone, a barrier that had held since October. The coin had been steadily rising since early October, moving past the $0.0055 resistance. After some pushback at $0.0085, Degen turned that zone into strong support.
The November altcoin rally took Degen from $0.0079 to $0.0218 in less than five days, but the RSI (Relative Strength Index) now sits in overbought territory, above 70. While this doesn’t automatically signal a retracement, it does suggest that the rally may be running out of steam.
The Risk of a Pullback and Key Support Levels
Despite the impressive gains, the $0.02 level has proven tough to defend. This price zone has historical significance but currently fails to act as strong support. Now, the focus shifts to how far Degen could retrace before bouncing back.
The next key support area lies at $0.015, which is likely to be tested soon. If that fails, the price could dip lower to the liquidity pool around $0.0117. However, a drop to this level would likely depend on a significant pullback in Bitcoin, which could trigger widespread panic and liquidation across altcoins.
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Despite these risks, the market structure remains bullish. The On-Balance Volume (OBV) recently hit a new high, surpassing the levels seen in June when the price peaked at $0.0153. If the rally continues, overhead targets sit at $0.0255 and $0.0316, based on Fibonacci retracement levels.
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