PERP Technical Analysis: Price Likely to Fall Below Support Level of $16.37
Past Performance
On the 20th of September, the trade for PERP opened at $14.30 and on the 26th of September, the price closed at $14.11. There is an approximate increase of 1.65% in the price. In the last 24 hours, PERP traded between $10.67-$18.85.
PERP Technical Analysis
PERP broke out of its downward regression channel with a thick green candle on the chart. The volume of the candle defines the intensity of the breakout. And thus, we can expect a trend reversal soon. Let us see if indicators suggest a retest or the rally will continue:
At the time of press, PERP is trading at $17.64, which has broken out of its resistance level. Moreover, the token is currently breaking out of its current channel. With a 55% increment in 24 hours, the price has made a new high and broke out of all the resistance levels.
The MACD and signal lines are in the negative zone, thus, giving out a sell signal. However, a bullish crossover by the Signal line over the MACD line has occurred. Thus, being the lagging indicator, we will have to wait and watch if the trend reversal is on the horizon or not.
Currently, the RSI indicator is at 56%. It faced rejection at the 38% mark and currently, is taking constant support at the 37% mark. Thus, buying pressures have taken over the selling pressure on the daily horizon. We have to wait and watch if it becomes strong enough to bring about a bullish trend reversal.
On the daily chart, the OBV indicator has broken its long-term downtrend and picked an upward trajectory. Thus, buying volumes are higher than selling volumes.
In short, when we look at all three oscillators, we can say that the price may continue to rise. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price rise is a corrective action or the beginning of a positive trend.
Day-Ahead and Tomorrow
Currently, the PERP price is below the second Fibonacci pivot point of $20.28. If the bears take over from this position, then the price is likely to fall below the first, second, and third support levels of $16.37, $13.97, and $10.81, respectively.
However, chances of it breaking out are higher. And, we can wait for another bull trigger and then expect the price to breakout. Post which, the price will test immediate resistance at $20.19. If the price breaks this level on the upside, traders can take a long position keeping the next target at $22.64.