Parcl technical analysis: Is PRCL ready for a $0.43 breakout?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Market context (Bitcoin & Parcl)

Parcl's inception on April 22nd aligns with a significant downtrend, which mirrors Bitcoin's price action during the same period. When Bitcoin took a 16% hit, Parcl followed suit, suffering from poor market-wide sentiment. While Bitcoin has made some recoveries, Parcl's entry into the market was marred by unfavourable conditions, which didn't allow it to gain much early momentum.

BTC chart

Parcl price action

Despite the downtrend, we've seen the bulls fighting back in Parcel's price action, particularly after bottoming around $0.12. On September 16th, Parcel rallied over 100%, following the broader shift in market sentiment indicated by the rounded bottom and inverted head and shoulders pattern seen across the total market cap 3.

This was a significant change, especially since the high formed on September 24th broke the swing lower highs from July, signalling a potential sentiment shift.

More recently, the higher swing low around the $0.18 mark suggests that buyers are now willing to pay a higher price for Parcl compared to before. This shift in market behaviour could lead to further upside if the momentum continues.

Playbook

What we're looking for now is a clean break above the $0.43 level. If this happens, it would indicate that more bullish price action is entering the market, confirming the shift in sentiment. We'll be keeping an eye on Bitcoin's movements to see how they influence Parcel's price action in the coming weeks.

Key levels

• $0.12 (bottom support)
• $0.18 (higher swing low)
• $0.43 (key resistance for a potential bullish breakout)

Cryptonary's take

While Parcel's initial price action was heavily influenced by Bitcoin's downturn, recent movements suggest a change in sentiment. The market is showing signs of buyers stepping back in, and a break above $0.43 could solidify this bullish momentum. With the overall market context improving, Parcel may have the potential for further upside.