PEOPLE price set to undo 80% gains, hints at double-digit correction
|PEOPLE price shows signs of exhaustion after rallying 81% in under 48 hours.
The bearish divergence can be clearly spotted on the RSI and AO indices, which hints at a trend reversal.
Investors can expect an 18% correction into the low volume node at $0.0354.
A flip of the supply zone’s upper limit at $0.04471 will invalidate the bearish outlook.
ConstitutionDAO (PEOPLE) price is hovering above a critical support level, a breakdown of which could kickstart a selling spree. PEOPLE price could shed 18% in search of a stable support level.
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PEOPLE price correction is likely
PEOPLE price inflated by a whopping 81% in under 48 hours and set up a local top of $0.0466. During this explosive rally, ConstitutionDAO set up three higher highs, but the Relative Strength Index (RSI) and Awesome Oscillator (AO) produced lower highs. This non-conformity is termed bearish divergence, and it forecasts a trend reversal for the underlying asset.
With that in mind, if PEOPLE price breaches the $0.0421 support level, it will serve as a confirmation of this bearish outlook. In such a case, the altcoin could trigger a 15% correction to $0.0354, which is the low-volume node of the recent upswing.
In some cases, PEOPLE price could dip as low as $0.0328, which is the point of control of the recent 81% rally.
PEOPLE/USDT 15-minute chart
While the bearish outlook is justified considering the bearish momentum indicators, investors should note that PEOPLE price could bounce the support level at $0.0370. This barrier is a key area since it nearly coincides with the inclining trend line.
A subsequent rally that produces a higher high above the previous local top of $0.0466 will invalidate the bearish thesis. This development could see PEOPLE price attempt a 7% rally to tag the $0.050 psychological level.
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