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Vikram
May 13, 2022
by Vikram

DREP Technical Analysis: Lack Of Bullish Faith Delays $0.50 Breakout

DREP
DREP prices break under the crucial support level of $0.50 and retest it with a morning star pattern reflecting the chances of a prolonged uptrend.

Key technical points:

  • The DREP prices grow by 40% overnight.

  • The price action forms a morning star pattern.

  • The 24-hour trading volume of DREP is $436,888, indicating a 2.86% fall. 

    • Past Performance of DREP

    DREP prices experience a surcharge in the underlying bullishness near the $0.30 mark after the breakout of the $0.50 mark. The recharged bullishness has led to an upward trend reversal with a morning star pattern and significantly lower price rejection. However, the uptrend struggles to surpass the $0.50 mark and reflects a higher possibility of a retest with the motive of bearish reversal under $0.30.

    TradingView Chart

    DREP Technical Analysis 

    DREP price action indicates a weakness in today’s trading volume compared to yesterday’s Doji formation, which supported the long-tail construction. Therefore, bullish-aligned traders must wait for the price action confirmation to avoid a bull trap.

    The crucial daily EMAs struggle to sustain a bullish alignment, and the recent merger reflects a grand bearish crossover to regain the bearish alignment in a single attempt. Hence, the bullish reversal will face formidable selling pressure near the EMAs.

    The RSI slope approaches the bearish influence of the 14-day SMA as it spikes above the oversold zone displaying growth in bullish momentum. However, the 14-day average line has kept the RSI under a downtrend, and the breakout will mark a bullish entry spot. Furthermore, the Stochastic RSI displays the K line crossing above the D line, reflecting a bullish crossover. 

    Thus, the momentum indicators suggest an uptrend and indicate the possibility of a falling wedge breakout.

    In short, the DREP technical analysis displays a high likelihood of a bearish reversal from the $0.50 mark.

    Upcoming Trend

    DREP prices fail to find a bullish commitment despite the bullish reversal pattern, evidenced by the weakened trading volume during the follow-through candle formation. Hence, the breakout chances of $0.50 lower and a reversal to the $0.30 seem inevitable, the fallout of which will drive market value lower to $0.20.

    On the opposite end, a bullish breakout of $0.50 will invalidate the bullish thesis and drive the prices higher to $0.65.

    Support Levels: $0.30 and $0.20

    Resistance Levels: $0.50 and $0.65

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    DREP Technical Analysis: Lack Of Bullish Faith Delays $0.50 Breakout
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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