Plume Network (PLUME) Price Analysis: Bullish Sign is Here

Plume Network (PLUME) has recently garnered significant attention within the cryptocurrency community following a successful $20 million Series A funding round in December. 

The project officially launched on January 21, swiftly making its debut among the top 200 cryptocurrencies ranked by market capitalization. 

Despite the promising start, PLUME’s price has exhibited a relatively muted performance, remaining trapped within a symmetrical triangle pattern since its launch.

However, recent positive news on March 15, when Plume Network announced a strategic partnership with Divvi to support builders and foster ecosystem growth, has reignited bullish sentiments. 

In this article, we will analyze PLUME’s current price trajectory, technical indicators, and the potential for a bullish breakout.

PLUME Price Analysis: Symmetrical Triangle Formation

Since its launch on January 22, PLUME has displayed a consistent symmetrical triangle pattern on the daily chart. Initially peaking at an all-time high of $0.213 the day after launch, the token faced substantial selling pressure, forming a long upper wick and declining. 

Since then, PLUME’s price has bounced between the triangle’s support and resistance trend lines, hinting at a continuation of neutral market sentiment.

The symmetrical triangle, widely considered a neutral chart pattern, indicates that both breakout and breakdown scenarios are plausible. At present, the token is approaching the triangle’s apex, signaling the possibility of an imminent decisive move. 

Additionally, the resistance level at $0.155 has posed a significant challenge, as evidenced by five rejections to date.

Read Also: How to Buy Plume 

Technical Indicators and Bullish Sentiment

Analyzing PLUME’s technical indicators presents a somewhat neutral outlook. The Relative Strength Index (RSI) is approaching the 50-mark, while the Moving Average Convergence/Divergence (MACD) remains slightly above zero, suggesting balanced momentum without strong directional cues. 

Nonetheless, the gradual upward trend in both indicators reflects the emergence of subtle bullish undertones.

The most compelling argument for a bullish breakout lies within PLUME’s wave count. The structure appears to follow an A-B-C-D-E wave pattern, typically indicative of an upward breakout. 

If accurate, the price may complete wave E near the triangle’s support line at $0.135 before propelling upwards. A successful breakout could propel PLUME to $0.234, marking a new all-time high by surpassing the previous $0.213 peak by approximately 10%.

Conversely, a breakdown from the triangle would invalidate this bullish thesis, pushing PLUME to the nearest horizontal support level at $0.105. This downside scenario, while less probable given the current wave structure, remains an important consideration.

Read Also: How to Stake Plume 

Volatility and Potential Breakout

As the symmetrical triangle pattern draws closer to resolution, market participants are bracing for heightened volatility. 

A breakout above $0.155 and subsequent clearance of the triangle’s resistance could herald a significant bullish rally, while a breakdown would likely usher in a period of extended consolidation or bearish pressure.

The strategic partnership with Divvi has bolstered optimism among PLUME supporters, yet caution is warranted as technical signals remain somewhat ambiguous. 

Nevertheless, the growing sentiment surrounding the project’s ecosystem development is likely to fuel speculative interest, contributing to potential upside momentum.

Market Sentiment and Community Reactions

The Plume Network community has shown a positive response to the Divvi partnership, with social sentiment indicators hinting at growing enthusiasm. 

Several prominent crypto analysts have also weighed in on PLUME’s potential breakout, emphasizing that sustained buying volume could catalyze a significant upward move. 

Despite mixed technical signals, market participants are cautiously optimistic, driven by the network’s active community and recent ecosystem developments.

Conclusion

While PLUME’s symmetrical triangle pattern has kept price movement constrained, indicators suggest a breakout is more likely than a breakdown. The recent Divvi partnership has injected fresh enthusiasm, hinting at the possibility of a bullish surge. 

Investors should monitor the critical resistance at $0.155 and keep a close watch on market sentiment to gauge potential breakout scenarios.

FAQ

Q: What is the current price of PLUME? 
A: As of now, the current price of PLUME is hovering near $0.135, trading within a symmetrical triangle pattern.

Q: What is the bullish price target for PLUME? 
A: If the breakout occurs as predicted, PLUME could surge to $0.234, setting a new all-time high.

Q: What factors are contributing to PLUME's bullish sentiment? 
A: Key factors include the strategic partnership with Divvi, positive community sentiment, and the symmetrical triangle pattern hinting at an upward breakout.

Q: What happens if the breakout fails? 
A: If PLUME breaks down from the triangle, it could drop to the horizontal support level at $0.105.

Q: Where can I buy PLUME tokens? 
A: PLUME tokens are available on various major exchanges. Always do your own research and check the official Plume Network website for updated listings.

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