Key Takeaways
- DeepBook Protocol (DEEP) broke out above resistance.
- The DEEP price increased by over 100% in a single day.
- Can DEEP sustain its rally and reach a new all-time high?
On April 15, DeepBook announced that its v3.1 will go live on the Sui Network, offering permissionless pools, lower fees, and deeper liquidity.
On April 22, Binance announced the listing of DEEP in its futures platform, triggering a massive rally.
The same day, South Korean exchange Upbit announced its DEEP listing, further boosting the rally.
The DeepBook Protocol token doubled and has continued its ascent today, getting closer to its all-time high price of $0.344.
Can DEEP maintain its momentum and reach a new all-time high, or will the rally falter instead? Let’s find out.
DEEP Price Doubles
The daily time frame analysis shows that DEEP broke out from a descending resistance trend line on April 9.
It followed that by reclaiming the $0.090 horizontal resistance area, confirming the downtrend is over.
The rally became parabolic on April 22 after the aforementioned Binance and Upbit listings.
Today, the DEEP price reached a high of $0.230, touching the 0.618 Fibonacci retracement resistance level.
Technical indicators are overbought but have not generated any bearish divergences.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) do not show any weakness.
If the DEEP rally continues, the all-time high is a 66% price increase away.
Will the Deep Rally Continue?
Similarly to the daily time frame, the six-hour RSI and MACD do not show any weakness despite being overbought.
However, the wave count suggests the DEEP price increase might end soon.
The wave count shows a completed five-wave upward movement (green) where DEEP is in wave five.
Moreover, the sub-wave count suggests wave five has ended or is in its final portion.
The fact that the price is at the 0.618 Fibonacci retracement resistance level supports this outlook.
The increase is likely wave A in an A-B-C corrective structure despite the possibility of a short-term top.
So, the DEEP price could correct toward the 0.5-0.618 Fibonacci support at $0.116-$0.142 but will resume its ascent afterward.
Local Top is Close
DEEP led the crypto market rally in the past two days, increasing by over 100%.
The price has reached a critical Fibonacci resistance level, but the price action does not show weakness.
However, the wave count suggests the price will reach a local top soon and begin a corrective decline.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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