PLUME’s epic price pump meets a swift reversal – Here’s what happened
The stablecoin deployment news sparked bullish sentiment, but that spark seems to have burnt out just as quickly.
Key Takeaways
Why did Plume rally?
The news that USDG0, the Paxos multi-chain stablecoin, would be deployed on the Plume network has enthused the bulls.
What are the next key levels?
The $0.03 and $0.0475 resistances need to be flipped to support quickly to keep the fizzling momentum going.
Plume posted a 39.55% rally in two hours on the 26th of November.
This price move came after Plume’s announcement that it has joined Hyperliquid [HYPE] and Aptos [APT] as part of the inaugural launch cohort for USDG0.
This is the multi-chain version of Paxos’ regulated stablecoin USDG. The deployment of the stablecoin on the Plume network reflected Paxos’ confidence in the network.
It has the institutional-grade infrastructure required to support the stablecoin, the announcement read.
Plume also has 280k+ active RWA users and $645 million in RWA total value locked (TVL). This was evidence for a fast-growing ecosystem. The Upbit listing announcement also aided this sentiment.
Plume: Bullish prospects shine, but not for long
The 1-day chart showed that a significant horizontal resistance lay at $0.076. The recent rally nearly retested $0.0475, which had been a support level earlier in November but was ceded to the sellers.
The structure and trend on the 1-day chart were firmly bearish. A move past $0.058 is needed to shift the structure.
While Plume [PLUME] skyrocketed initially, this rally has not held up. In recent hours, a deep retracement of the quick price rally has occurred.
At the time of writing, PLUME was nearly at the $0.025 base that launched the rally.
The 4-hour chart showed that the bulls have been extremely inconsistent. The short-term resistance at $0.028-$0.03 was not defended as support.
Nor was the $0.0475 level challenged, since the momentum reversed very quickly.
Therefore, even though the MFI showed buying pressure and upward momentum, traders and investors can remain bearishly biased.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
