ConstitutionDAO’s PEOPLE token has experienced an impressive 81% rise in less than 48 hours, raising concerns of a potential trend reversal indicated by bearish divergences in the Relative Strength Index (RSI) and Awesome Oscillator (AO). Investors are cautioned as the altcoin faces a critical juncture with an 18% correction possibility after a 300% surge in the past four days.
PEOPLE’s current position above a critical support level is a focal point for investors, with a breach potentially triggering a sell-off and an 18% correction. The anticipated correction targets a stable support level around $0.0354, representing the low volume point of the recent surge, pending a significant development confirmation.
A drop below the support level at $0.0421 would confirm a bearish outlook for PEOPLE, potentially leading to a 15% correction towards $0.0354. The downside risk could extend to $0.0328, aligning with the control point of the recent 81% rally.
While bearish trends and momentum indicators suggest caution, investors should watch for potential support at $0.0370, closely aligned with an inclined trend line. A rebound from this support could add resilience to PEOPLE’s trajectory.
Despite bearish indicators, a recovery from the $0.0370 support could invalidate the bearish thesis and potentially trigger a 7% rally, pushing PEOPLE to a new high above $0.0466 and towards the psychological level of $0.050. With potential correction and reversal scenarios on the horizon, investors should closely monitor the $0.0370 support and the $0.0421 confirmation point, balancing the delicate interplay between bearish indicators and potential resilience at key levels.