NOIDA (CoinChapter.com) — DeChat (CHAT) seems to have put a recent scandal behind it while its token’s price continues moving horizontally following its launch on Feb. 26 earlier this year.
The project’s token launch became scandalous when the DeChat team inadvertently shared a honeypot scam link in its announcement on Feb. 26, 2024. This led to some users losing money.
Crypto investigator ZachXBT highlighted the error, exposing users to financial risks through a deceitful PancakeSwap pool. Following the discovery, DeChat corrected the mistake and offered refunds to affected users amidst widespread community outcry.
Despite the initial hiccup, the token launch saw CHAT price skyrocket to 1.5 million% to a high of $3,000 (on Poloneix) before returning to earth. The token has since traded between $2 and $4.
CHAT Price Forms A Bullish Pattern
The DeChat token price has formed a bullish technical pattern called the ‘Ascending Triangle.’
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
CHAT’s price action within the triangle appears to be testing the resistance level multiple times, indicating a buildup of buying pressure.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the token’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, CHAT price has a theoretical price target near $3.52, a spike of over 60% from current levels.
DeChat Price Aiming To Break Above $3
The DeChat team recently announced Yuta Misaki, a Japanese YouTuber with over 1 million followers, as the project’s ambassador for March. The announcement stated that Misaki would play a “pivotal role” in enhancing the platform’s user experience in Japan.
However, the announcement only mentioned an upcoming YouTube teaser without sharing more details. The resulting hype seems to have worked in CHAT’s favor, with the token spiking nearly 60% from the daily low near $1.76 before correcting.
If the rally continues, the CHAT price could rise to the 0.618 Fib resistance near $2.71 before targeting the 0.786 Fibonacci resistance near $3.41.
On the other hand, if DeChat fails to start a rally, CHAT price could drop to the support near $1.8. Breaching the immediate support level would likely see the DeChat token test the 0.236 Fib support near $1.19 before recovering.
