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VLXUSDT on +125%, strongest 3day rally of 2022. What's next?

COINEX:VLXUSDT   VELAS NATIVE / TETHER
The Velas coin ( VLXUSDT ) completed yesterday a +125% 3-day streak, which is the strongest 3-day rally since the +258% of November 03 2021. By doing so, the price broke above the 1D MA50 (blue trend-line) but failed to close above it. This should be enough to put an end to this rally for at least 1-3 days but the true technical Resistance remains the 1D MA200 ( orange trend-line), with Velas failing to close above since February 23.

The long-term pattern remains a Channel Down since late 2021. Actually as long as the price trades below the 0.29000 Resistance formed of the April 06 High, the trend remains bearish . That is the Resistance of a potential Inverse Head and Shoulders (IH&S) pattern, that happens to be almost where the 1D MA200 is. This is a pattern technically seen during downtrends such as the current one, and typically forms bottoms and kick-starts bullish reversals.

The last similar pattern failed to break above its Resistance on January 04, even though its was not during a downtrend. So you realize how critical the 0.29000 Resistance level is. Note that the RSI on the 1W time-frame has been trading and closing below its MA line (yellow) since November 30. A 1W closing above it, should be enough to restore the long-term bullish trend , especially if it coincides with a break above the 0.29000 Resistance.



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