Bitcoin-based Memecoin PUPS Spikes 30%, Nears Descending Resistance — Can It Continue Going Up?
The price of PUPS has been in a downtrend from April 12 but now there are some signs of a new starting uptrend. Will it be confirmed?
Key Takeaways
- The PUPS memecoin surged 30%, nears key descending resistance.
- A recent low at $32 might signal end of downtrend.
- It is has recovered in the short-term, so there is the potential for a breakout.
In the ever-volatile world of cryptocurrency, the Bitcoin-based memecoin PUPS surged on April 24, spiking by 30%. As investors and crypto enthusiasts turn their attention to this lesser-known asset, PUPS approaches a crucial descending resistance level.
With its price being in a downtrend since it hit the market, today’s development poses a question. Can PUPS maintain its upward trajectory, or will this resistance curtail its newfound momentum?
PUPS Price Analysis
When it entered the market, PUPS reached an all-time high of $150 on April 12. It quickly fell to $50 on the same day, decreasing by 66%, and recovered to $100 the next day. From April 13, we saw the formation of a descending triangle, which it still is, and whose descending resistance interaction we see today, April 24.
Analyzing the wave structure in the descending triangle, it is most likely a corrective WXYXZ sub-divided into three wave moves at each wave. This leads us to believe that its April 23 low of $32 could have been the completion of this stage as the Z wave ended.
To further support this, we can see the hourly Relative Strength Index and MACD indicate the beginning of a new uptrend. However, considering the limited price history, it is still unknown whether this uptrend can be major, or just a short-lived recovery.
Is a Breakout Ahead?
Zooming in on the 15-minute chart and examining the structure further, we see that rejection took place at $43. PUPS is still in the confinement of its ascending channel. The support is being tested after the price spiked down to it in a 7% drop.
We most likely saw the first minor uptrend developing. The price is now forming the first lower high at the 0.618 Fibonacci retracement level at $36. If the price finds higher support than on April 23, the likelihood of a breakout is very high.
In that case, we can project a target of $54 at its next uptrend. It could even go beyond $62, if this is a new, more significant, five-wave impulse.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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