Rocket Pool Token Forms an Ascending Triangle Pattern, Indicating a Bullish Breakout
- Rocket Pool prices breached the $50.00 key resistance, forming a bullish flag on the 4-hour chart.
- The RPL prices are facing stiff resistance at the $55.00 level.
The Rocket Pool (RPL) token price analysis for May 3, 2023 indicates the token opened the daily trading session on a low note at $48.23. The token has been trading in a range between $48.23 and $52.55 for the past few weeks. The higher lows indicate buying pressure at higher price levels.
The flag pattern indicates a continuation of the previous uptrend. A “bullish breakout” could see RPL prices surge to new monthly highs above $60.00. However, failure to breach the $55.00 resistance could see prices decline to retest the $48.23 support level.
Rocket Pool is trading at $52.23, up by 6.99%, with a trading volume of $16,007,628. The trading volume has increased exponentially over the past 24 hours, indicating more buyers are entering the market.
Looking at the daily timeframe, Rocket Pool has been making higher highs and higher lows, with the price hovering above the 12-day EMA and the 26-day EMA, indicating a bullish trend.
The RSI is at 66.71, indicating the token is neither overbought nor oversold. The MACD is also above the signal line, and the histogram is increasing in height, indicating increasing bullish momentum.
The Average Directional Index indicator used to measure the strength of price trends shows a reading of 38.89, indicating a strong uptrend. The ADA/USD pair could continue its upward momentum if the bulls remain in control.
RPL/USD Technical Analysis on a 4-hour chart: A bullish Flag pattern formed
Rocket Pool price action on the 4-hour chart indicates the altcoin price spiked past the key resistance of $50, forming a bullish flag pattern in the process. A stiff resistance at the 21-day EMA has been keeping the price at bay for over a week.
A breakout above this level could push RPL/USD up to $75 in the near term. The Relative Strength Index (RSI) has also stabilized above 50, signaling that there is potential for further bullish momentum in the short term.
On the downside, if Rocket Pool fails to break the 21-day EMA resistance, it could retrace to $45. Key support for this move will be at the 20-day SMA and the 50-day SMA, which have both held up well in recent weeks.
Rocket Pool’s fundamental analysis reveals that whale activity often signals tops and bottoms for the cryptocurrency. The rise in large transactions involving more than $100,000 worth of RPL could be seen as an indicator of a market top or bottom.
Going forward, analysts will likely monitor whale activity and large volume spikes to determine potential trend reversals for the Rocket Pool price. The latest whale transfer data shows 70 transactions involving more than $100k worth of RPL preceded the local price peak and subsequent dump.
While RPL has seen significant growth since its launch in November 2021, the cryptocurrency remains susceptible to whale activity and large volume spikes that could create temporary price distortions. Analysts recommend monitoring on-chain data and whale transfers to better understand Rocket Pool price trends and potential reversals.
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
