Rocket Pool (RPL) Jumps 40% Post Binance Listing, Correction May Be Over
Rocket Pool Jumps After Futures Listing | Credit: Hameem Sarwar
Key Takeaways
- Binance announced the listing of Rocket Pool (RPL) futures on Sept. 9.
- The price of RPL spiked 40% shortly after the announcement.
- Is this the catalyst that finally ends a 518-day RPL correction?
Rocket Pool (RPL) has performed relatively poorly in 2024, declining by over 60%. On Sept. 7, the price risked a breakdown from a nearly three-year horizontal support area but bounced once it reached it. Two days later, the price increased sharply after Binance announced the listing of RPL futures.
Will this be the catalyst that RPL desperately needs to end its downtrend, or will the rally be unsuccessful, similar to the other failed recoveries this year?
Binance Announces Rocket Pool Futures
On Sept. 9, Binance announced the listing of RPL/USDT perpetual futures with up to 75x leverage and a capped funding rate between -2% and 2%. Rocket Pool is a liquid staking solution on the Ethereum blockchain that competes with Lido DAO.
It is important to note that Binance did not just add a new pair but also listed RPL futures for the first time. No other pairs exist besides the recently added RPL/USDT pair.
Shortly after the announcement, the RPL price increased by 40%, from $9.66 to $13.26 in an hour. Although RPL has cooled down since then, it still trades over 20% above its pre-listing price.
Rocket Pool’s Lenghty Correction
The weekly chart shows that the Rocket Pool token has fallen under a descending resistance trend line for the past 518 days. Specifically, the decline has been contained under a descending resistance trend line that has existed since the all-time high of $63.80 in April.
The downward movement resembles a completed A-B-C correction in which waves A:C had a 1:0.618 ratio, which is common in these corrections. If this is the case, the correction ended in August with a bounce at the long-term $9.50 horizontal support area. This is an important horizontal level below which RPL has not traded in over two years.
However, the weekly time frame indicators do not confirm if this is the case. Both the RSI and MACD are declining and below their bullish thresholds. Also, the Relative Strength Index (RSI) has a negligible bullish divergence, and the MACD has not made a bullish cross yet.
So, the weekly time frame is insufficient to determine whether the RPL price will break out.
RPL Price Breaks Out
The daily time frame shows that the RPL price has broken out from a descending wedge pattern. The shape of the pattern fits with the long-term count since it indicates the C wave developed into an ending diagonal.
Unlike the weekly time frame, the daily RSI and MACD have generated bullish divergences (green), enhancing the likelihood that the increase will continue.
If it does, the closest resistance area will be at $22.10. The 0.5 Fibonacci retracement resistance level creates this target. Depending on the weekly close, this could also confirm a breakout from the long-term trend line.
Upward Movement May Continue
The RPL price spiked sharply after Binance announced its listing on its futures platform. The bounce happened at a critical horizontal support area and could mark the end of a lengthy correction. The breakout from the short-term wedge supports this outlook.
HashKey Capital Research Director Jupiter Zheng Discusses Liquid Staking Narratives
