The overnight surge in Powerpool ends the correction spree and puts 30% of YTD profits on the charts. Will the uptrend in $CVP continue to break $0.50 and top $1 for a 2x surge in the coming weeks?

Powerpool, with a market cap of less than $15Mn, is a DeFi token waiting for a remarkable comeback after years of winter. Changing hands at $0.4791, it currently trades at a discount of 97% from the all-time high. This confirms the enormous upside potential.

Further, a more than 100% intraday gain signals a potential bullish trend reversal and ends the correction phase. Will the recovery rally result in a high momentum breakout rally for Powerpool?

Powerpool Gains Traction for a Potential Weekly Trend Breakout

Maintaining a declining trend in the logarithmic weekly chart, $CVP acts under the influence of a solid resistance trendline. Powerpool currently faces multiple bearish reversals from the trendline, with its market price dropping from $6 to the bottom support level of $0.19.

However, the recent surge in the $CVP token leads to a massive bullish engulfing candle in the weekly chart with a 102% rise. Further, the recovery rally completes three consecutive bullish candles and undermines the correction in May and June.

As per the Fibonacci levels, despite the bull run, the altcoin faces opposition at the 23.60% Fibonacci level at $0.47. With higher price rejection in the weekly candle, the trendline breakout is under question. However, a bullish trend will likely unleash the trapped momentum for a massive upside move.

The bullish trend results in an uptick in the MACD and signal lines, teasing a potential positive crossover. Further, a visible divergence in the average lines bolsters the possibility of a breakout run.

However, the daily RSI line shows hardly any bullish divergence as it bounces back from the oversold boundary. Nevertheless, the massive uptick crosses above the halfway line signals a boost in trend momentum.

Intraday Surge Faces Opposition at Fibonacci Levels

With a resistance trendline breakout in the daily chart, the massive surge in $CVP exceeds all the crucial EMAs (20, 50, 100, 200). Approaching the 78.60% Fibonacci level, Powerpool struggles near the $0.50 psychological level. Further, the 20D and 50D EMAs tease a bullish crossover, the first step in a bullish trend reversal.

Currently, $CVP trades at $0.4739, with an intraday Doji candle near the 78.60% Fib level. The intraday jump turns the YTD from negative to +30%.

Will $CVP Reclaim the $1 Mark?

With a ginormous bullish candle in the daily chart, Powerpool is likely to take a cool down between the 78.60% and 61.80% Fibonacci levels. However, as witnessed, the 4% surge in BTC led to a 2x rally in $CVP overnight. Notably, a broader market recovery could result in a surge to $1 in the coming days.

Furthermore, a bullish trend continuation above the annual 52W high peak at $0.65 will be a strong buy signal for a target of $1.