Just a quick chart for a friend, it looks like a possible bull flag forming in the $.018 range.
The 20 and 50 EMAs are acting as support for the bullish rally over the 15th and 16th of October. I marked other local levels on the 2h chart; I'd include more history but the FTX chart was the only USD pair I could find and it's data only goes back a week.
Looking at price volume, the trend extended above the value area recently, but is flirting with a return back inside as the RSI continues to cool off. If SPELL closes inside the value area, reference the MACD for confirmation of short term bearish sentiment, it will post a bearish cross and a local correction that might follow to the support level noted.
But for the bulls, if we reference the the MACD histogram you see a waning but bullish trend; if the price finds support in the $0.018 range (possibly wick into upper 0.017 range), we could see a third bullish rally in SPELL's current pattern that would correspond to the bull flag currently on the chart. My target for such a breakout is starting around $0.022. I'd look for a healthy corrective pattern to follow after such a breakout.
Alternatively, if SPELL fails to break bullish from this flag and enters a bearish pattern- other support levels are noted on the chart but I'd look at $0.0138 as the likely lowest/worst case scenario for a correction, if the confluence of local value range, the 20, 50 EMAs and the point of control fail to support SPELL.
The 20 and 50 EMAs are acting as support for the bullish rally over the 15th and 16th of October. I marked other local levels on the 2h chart; I'd include more history but the FTX chart was the only USD pair I could find and it's data only goes back a week.
Looking at price volume, the trend extended above the value area recently, but is flirting with a return back inside as the RSI continues to cool off. If SPELL closes inside the value area, reference the MACD for confirmation of short term bearish sentiment, it will post a bearish cross and a local correction that might follow to the support level noted.
But for the bulls, if we reference the the MACD histogram you see a waning but bullish trend; if the price finds support in the $0.018 range (possibly wick into upper 0.017 range), we could see a third bullish rally in SPELL's current pattern that would correspond to the bull flag currently on the chart. My target for such a breakout is starting around $0.022. I'd look for a healthy corrective pattern to follow after such a breakout.
Alternatively, if SPELL fails to break bullish from this flag and enters a bearish pattern- other support levels are noted on the chart but I'd look at $0.0138 as the likely lowest/worst case scenario for a correction, if the confluence of local value range, the 20, 50 EMAs and the point of control fail to support SPELL.