The price of the ConstitutionDAO (PEOPLE) token has witnessed a 29% spike today, accompanied by a 151% increase in trading volume. This sudden rally comes as the token attempts to break out of a descending trendline that has constrained its price movement since the beginning of March. During this period, PEOPLE experienced a 70% decline.
The current price surge has reignited hopes among bulls, who are eagerly anticipating a decisive breakout above the descending trendline. If successful, this move could potentially pave the way for a 100% price surge in the near future.
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Price Action Reveals Fakeouts: Now Isn’t the Best Time to Buy
It’s worth noting that this is not the first time PEOPLE has exhibited such a price spike. Previous attempts to break out of the descending trendline have proven abortive. Price action shows that just two days ago, the token tried to break above the line but failed to sustain the move. A similar spike occurred on April 9th, only to be followed by a subsequent pullback.
Given this historical context, it may be prudent to exercise caution and wait for a decisive daily candlestick confirming the breakout, followed by a successful retest of the descending trendline. Only then should the option of buying for a medium-term run be considered.
Key Levels and Potential Price Target
If a decisive breakout and successful retest occur, the PEOPLE token could surge to around $0.036, where resistance is expected. From there, potential targets could lie at $0.042 and $0.052. Reaching the top of the channel would represent a remarkable 100% price spike for the token.
While the current price action is undoubtedly exciting, it’s crucial to approach this potential breakout with a cautious and analytical mindset. Careful observation of key levels and a confirmation of the breakout’s sustainability will be essential before making any investment decisions.
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