We think there are two significant levels to watch here. To the upside 8,300 and to the downside 7,450.
The 8,300 level converges with the upper band of the Ichimoku cloud and exhibits tops we saw in early May.
On the downside level, we have already bounced a few times rather aggressively. Additionally, it can also be viewed as the neckline of the potential shoulder-head-shoulder formation (this has not yet been confirmed).
The channel we have drawn gives us a little more certainty that we are going to test the downside level first.
Have your sell orders ready if we break through it.
Also, from a risk/reward point of view, it does make more sense to play it from the short side, with the stop just above 8,300.
It does not look too good for the bulls. After hitting the high of 289 we came down in a corrective way, with lower highs and lower lows. To break that, we need to see a push above 255, which also means we need to push through the Ichimoku cloud.
I do not see this happening quite yet, and believe that we will push lower toward the recent low of 222. After that, I expect a consolidation to happen around the resistance zone.
This is one of the few coins that is continuously performing in a clean wave structure. Since the end of April, we have been moving upward from 65 to 128, with no violation of higher highs and higher lows.
Currently, this structure will stay clean as long we keep trading above 100.Weiterlesen