The-Line

DEGO/BTC short term analysis. Multitude of decreasing triangles

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BINANCE:DEGOBTC   DEGO / Bitcoin
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DEGO/ BTC short term analysis. A multitude of decreasing triangles.

DEGO is beyond a fresh Binance introduction, with its great movement. 3x, lol
I don’t know about the project, but I thought it was worthwhile to deal with the movements after the fresh introduction for the duration of an analysis. So this part will also be of a smooth technical nature.
It started relatively well, 4 days after launch, it was already up 330%. At the moment, however, it looks pretty weak.

Analysis:
The graph shows a 4-hour view. It also shows how fresh the introduction is. The red horizontal line indicates the busiest location that currently functions as a resistor.
He went 330% against BTC in 4 days, which is pretty rough. The usual correction in this case was not missed, which is still going on. Unfortunately, it forms a decreasing triangle, which is a bear shape. A fakeout has already taken down from this formation to the weak support marked with a green dashed line. He then made an attempt at a repeated eruption upwards, but without success based on the results so far.

This decreasing triangle is also present in the weekly view. Since the weekly view predicts a stronger expected direction, this tiny weak outburst attempt is likely to fail completely. I marked the supports with a green horizontal line going down. The lowest green line is the stronger support. But let’s not forget by any means, this is a 4 hour chart! This support can also fail in a short time, although from this point of view it is unlikely.

I have outlined in blue an expected route to the “strong” support zone . From the current exchange rate, this predicts a fall of ~ 40%. This level is roughly shown by the eruption from the descending triangle .
From a trader’s point of view, I think a downside test would be good because it could make the current bear image more bullish .
On a daily basis, we are already closed under the top green pillar, which is just being tested back by the exchange rate.
If we manage to get over the busiest zone and stay stable, we can quickly see new peaks, but I see a lower probability of that right now.
Volume is a fraction of what it was a few weeks earlier, which also indicates a lack of interest. Currently, in the 4-hour view, it just brings the average.

RSI:
Seeing nothing special, it shows a declining trend, as does the exchange rate.

Conclusion:
Freshly introduced cones should be treated with caution, initially with large oscillations in both directions. Although the exchange rate may burst upwards, it is still better to avoid bear shapes.

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Non-financial advice. Trading in cryptocurrencies is risky and can result in losses.

Peace

Comments

whats next? thx
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Great analysis. Thank you.
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