PLUME’s epic price pump meets a swift reversal – Here’s what happened

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