Echelon Prime (PRIME) Forms Bullish Divergence After Drop to 19-Month Low

Key Takeaways

• PRIME’s price dropped to its lowest level since November 2023 during today’s early trading hours.
• However, the CMF shows buying pressure, with a falling wedge validating a potential turnaround.
• Likewise, the MACD reveals bullish momentum, flashing signs of PRIME rebound toward $7.
• Interested in buying or selling ECHELON PRIME PRIME coin? Read our review of the best exchanges to buy and sell ECHELON PRIME PRIME.

Echelon Prime’s (PRIME) price dropped to $4.18 earlier today. This value represents the lowest the cryptocurrency with fundamentals in gaming has reached since November 2023.

However, shortly after PRIME’s price dropped to the 19-month low, it bounced. As of this writing, the token trades around $4.55, showing signs of a sustained rebound. Will this bullish sign be enough to spark a complete comeback?

Correction Leaves 98% Holders in Losses

On Jan. 6, PRIME’s price was around $17, a 75% increase from Dec. 22, 2024.

However, since reaching that peak, the token has struggled to sustain a rebound like a large part of the market. As a result of this underwhelming performance, 98% of the total Echelon Prime holders are in unrealized losses.

Only 1% of this cohort is in profit, while another 1% holds at their original on-chain cost basis as shown by the Global In/Out of Money (GIOM) indicator below.

Wedge Pattern Emerges Amid Rising Accumulation

Despite the unrealized losses lingering around PRIME, it appears that the cryptocurrency could be inching toward recovery.

For starters, the daily chart shows that PRIME’s price drop from $13.20 to $4.18 has led to the formation of a falling wedge. A falling wedge is a pattern defined by two descending trendlines—one tracking lower highs and the other tracking the lower lows.

The wedge appears once these two trendline converge at one point. According to the image below, the Chaikin Money Flow (CMF) seems to be supporting the recovery.

The CMF measures the level of accumulation or distribution around a cryptocurrency. When it rises, it indicates buying pressure, and when it drops, it signifies selling pressure.

Looking for a safe place to buy and sell ECHELON PRIME PRIME? See the leading platforms for buying and selling ECHELON PRIME PRIME.

On Monday, Feb. 24, the CMF reading dropped to -0.38. As of this writing, that reading is on the brink of breaking above the zero signal line, indicating that PRIME’s price has formed a bullish divergence.

Should the CMF reading break above the signal alongside a rise above the upper trendline of the falling wedge, then PRIME’s price confirm the uptrend.

PRIME Price Analysis: Recovery to Follow

Looking at PRIME’s price action through the daily chart lens again, the Moving Average Convergence Divergence (MACD) shows that the bullish divergence could be valid.

The MACD measures momentum using the relationship between two Exponential moving Averages (EMA). When the reading is negative, it means the longer EMA has crossed above the shorter one, and momentum is bearish.

But in this scenario, the 12 EMA (blue) has crossed over the 26 EMA (orange), validating the bullish momentum. Should this remain the same or improve, PRIME’s price might breach the resistance at $5.67.

If successfully broken, this might lead the altcoin’s value toward the $7 mark. In a highly bullish scenario, PRIME could rise to the 0.618 golden ratio near 9.46.

On the flip side, if the token fails to rise past the $5.67 resistance, this prediction might be rendered null and void. In that case, PRIME’s price could sink below the $4 mark.