- PERP token price action indicates a bullish reversal as it forms a double bottom price pattern.
- The token price is facing resistance near the 50-day EMA as it finds demand near the 200-day EMA.
- The token pair of PERP/BTC is trading at 0.000363 BTC, facing an intraday rise of 3.65%.
PERP token Price action approaches the 200-day EMA resulting in the push back from the support area with the double bottom price pattern formation. The increasing buying pressure is evident by the increase in trading volume above the 20-day MA.
The current price structure shows that bulls have immense pressure to overcome the $20 overhead resistance, but the price action is ideally suited below the macro resistance level.
What Is Perpetual Protocol?
Perpetual Protocol is based on an Uniswap-inspired automatic market maker (AMM) design (constant products curve). Perpetual Protocol’s liquidity pool k is virtualized and calculated algorithmically. As a result, perpetual Protocol can programmatically update and set the parameters of the virtual AMM(x*y=k) and provide a product that can compete in any market.
The team claims that PERP (virtual AMM) is the first virtual AMM (vAMM). It enables markets without makers and still guarantees on-chain liquidity. These market-less makers lower capital requirements than traditional markets and open the door to new and exciting futures.
The holders of the native token $PERP guarantee Perpetual Protocol’s Insurance Fund. The Insurance Fund covers any unanticipated losses that result from leveraged trading. Perpetual Protocol will make $PERP more to replenish the Insurance Fund and pay the losses.
Perpetual Protocol’s Staking Pool allows $PERP holders to stake their assets for a set time. Stakers receive a portion of the protocol transaction fees and inflationary staking rewards in return.
PERP Token Price Breaks The Resistance Trendline
THE PERP token price breaks above the resistance trendline in the 4-hour technical chart. The price action represents a solid uptrend in action that may shortly result in a gain of 20% to 35% in the upcoming weeks.
RSI signals a rise in underlying bearishness. The RSI line moves lower towards the oversold zone and spikes down into the neutral zone.
The ADX is indicative of a growing trend since the ADX line is moving lower.
Conclusion: The PERP token’s price has shown a resistance trendline breakout after the enormous demand found near the 200-day EMA. However, the coin’s price is not yet above the resistance level of $20, which can be an entry spot upon retest.
Support- $12 and $10
Resistance- $20 and $25