The recent performance of the Pirate chain price is a stark reminder to investors that a high tide does not always raise all ships.
With the price of Bitcoin established above $55,000 and Ethereum now over $3,400, investors are understandably looking further down the altcoin chain for returns. The total Crypto market cap now exceeds $2.3 Trillion, and coins with a lower US Dollar value have been thrust to the fore.
The Pirate chain price had been a beneficiary of this. Less than two weeks ago, the coin was riding the wave higher to the rank of #48 on coinmarketcap.com’s crypto league table.
More recently, the coin which trades under the cleverly named ticker (ARRR) may have left investors feeling more ‘AARGH.’
The decline in the Pirate chain price from its $16.16 all-time-high to the current $8.061 level has seen the coins’ market cap shrink by -50%. It has slipped down the rankings. Falling 168 places to languish at a lowly #213.
Pirate chain price outlook
Looking at the 2-hour chart, we can see that the price is trending sideways, in a narrowing band. The lower end of this pennant formation links the 11th of April low $0.853 with a series of higher lows. This currently offers support at $7.00.
A descending trend line from April’s $16.16 high, provides immediate resistance at $8.075.
A convincing break of the upper resistance level would suggest a +32% move higher, to the 27th of April high of $10.610. A break below the ascending trend may initiate a leg lower by 24%. There the market finds support at the April 29th low, at $5.820.
Until the Pirate chain price can break free from the shackles of this narrowing range, navigating a price direction is difficult.
I would expect an increase in volatility once the formation is eventually cleared, and investors should prepare themselves for choppy waters ahead.