Base meme coin Degen pumps 100% after Coinbase adds it to their perpetual futures. Let’s examine why Base SocialFi is popping up.
Base is commonly known as Coinbase’s own Layer-2 network, and they have been working hard to get people to use it.
Degen is a community coin originating from the social platform Farcaster. It has emerged as a favorite coin amongst traders on Base and has been showing signs of life.
Coinbase aims to be the first MICA-compliant perpetual futures platform in Europe and certainly has the money and connections to do so properly. So, Degen being added to Coinbase is a step in the right direction for the token!
Degen Price Analysis: Consolidation below resistance is?
By first looking at the Degen chart, it looks like it’s slow bleeding. However, with Base doing all time high transactions day after day and Coinbase actively pushing the chain, a favorite amongst the crowd is always a good bet, and especially one with a name used by many in crypto such as “Degen”.
At first glance at the chart, we can see that $0.0053 was resistance before the initial big run-up. It was supported before breaking down. It has now been resistance again. It’s an important level!
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Degen Base Meme Coin Showing Shift Into Strength
$DEGEN, #MRMIGGLES and other big @base alts pumping recently. @coinbase pushing @base and is also trying to push their perpetuals as the first MICA compliant exchange.
I’m still very long $BOSHI and believe it’ll have multiple X’s in the coming months. Si?
Get in @Boshi_on_Base
— VikingXBT (@VikingXBT) August 11, 2024
A commonly known term is “Consolidation below resistance is bullish”. This is mostly true and is also happening here on Degen. There’s never one playbook that fits all, as real-life events such as war or macroeconomics can affect things.
It is easy to see on Degen’s chart that the 30-moving average on the daily chart (blue line) has been a good indicator of bullish or bearish price action.
When a price has been below it for a while and reclaims it, it usually goes on a good run. When the price goes below it after a run-up, it results in the price going down for a long period. So, getting back above the 30D MA will be very important!
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
