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
Source: PLUME/USDT on TradingView
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.
Source: PLUME/USDT on TradingView
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
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