- DEGEN crypto has a bearish structure and short-term bearish momentum.
- The price is expected to bounce from the nearby Fibonacci support level.
Degen [DEGEN] saw a substantial boost to its prices in October. The unofficial token that began as a memecoin on the Base network now has a market capitalization of $124.6 million.
Despite the 28% price drop since the highs of the 14th of October, the token is still up 128.5% this month.
Technical analysis showed that more gains can be expected. The $0.008 region is a key support level in the coming days. The reaction there would be a good indication of buyers’ strength.
Retracement phase is in progress for DEGEN crypto
Source: DEGEN/USDT on TradingView
On the 4-hour chart, the market structure flipped bearishly on Tuesday the 15th of October. The trend, which had been bullish so far, could slip into a short-term bearish trend that signifies a retracement phase for DEGEN.
The RSI has fallen below the neutral 50 to indicate momentum was on the side of the sellers. Yet, the OBV did not agree with those findings.
The selling volume of the past few days that forced a near 25% correction did not have remarkable volume behind them.
The Fibonacci retracement levels outlined the key support levels. Given the reduced selling pressure, it is likely that the 50% level at $0.0796 would serve as support and push prices higher.
Sentiment bullish after recent gains
Source: Santiment
The social volume behind DEGEN jumped higher on the 2nd of October, but has fallen a bit since then. The Weighted Sentiment was slightly bullish as well.
Together, they showcased bullish expectations from participants on social media.
Is your portfolio green? Check out the DEGEN Profit Calculator
The Open Interest data from Coinglass showed rising OI alongside the prices. This bullish conviction in the derivatives market was a positive sign.
The volatility around Bitcoin [BTC] during the New York open on Tuesday saw DEGEN’s OI drop, but chances of recovery appeared good.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
