My previous analysis was really bearish, however, this one has a much more bullish outlook. There were no targets in particular, so to obtain possible price objectives, I stated to look for support around round numbers such as .25, .20, .15, etc and .25 held as support.
The Chart:
The green line was previous resistance from the triangle, the blue line was previous support from the triangle lasting over 3 years. I was very bearish when it broke that trendline, but I think there is a high probability that the red resistance will be retested because of the current action presented on this chart which means there is a chance for a large move upwards. The reason for this is that there appears to be a descending wedge which can be seen in orange. Descending (falling) wedges are naturally a bullish pattern since they usually break upwards, but since they are also a continuation pattern and there is no trend presented here, so the upside breakout will be put at risk. The volume of this pattern is descending overall which is text book. The upper price objective of this pattern is .40USDT and the lower price objective is .13USDT. On the RSI the down trend can clearly be noted, so a break from this RSI downtrend would be extremely bullish.
Possible Price Actions:
In yellow, I have three different possible price actions, first, I believe that a downward breakout is extremely viable; although, I do not have all of the statistics on the breakout yet, I do believe this is the highest probability outcome at the moment but that is simply conjecture. The second possible price action to occur is a breakout and a test of the red horizontal resistance, if and only if the upper trendline of the falling wedge is successfully defended (the reason for this which I have mention before is that there could be an upthrust or a false break of the upper trendline and then a downward break from the pattern), I do believe there will be strong bullish action following that movement. The final possibility would be sideways action or sideways action that is falling using the green trendline as support.
Previous Analysis:
The Chart:
The green line was previous resistance from the triangle, the blue line was previous support from the triangle lasting over 3 years. I was very bearish when it broke that trendline, but I think there is a high probability that the red resistance will be retested because of the current action presented on this chart which means there is a chance for a large move upwards. The reason for this is that there appears to be a descending wedge which can be seen in orange. Descending (falling) wedges are naturally a bullish pattern since they usually break upwards, but since they are also a continuation pattern and there is no trend presented here, so the upside breakout will be put at risk. The volume of this pattern is descending overall which is text book. The upper price objective of this pattern is .40USDT and the lower price objective is .13USDT. On the RSI the down trend can clearly be noted, so a break from this RSI downtrend would be extremely bullish.
Possible Price Actions:
In yellow, I have three different possible price actions, first, I believe that a downward breakout is extremely viable; although, I do not have all of the statistics on the breakout yet, I do believe this is the highest probability outcome at the moment but that is simply conjecture. The second possible price action to occur is a breakout and a test of the red horizontal resistance, if and only if the upper trendline of the falling wedge is successfully defended (the reason for this which I have mention before is that there could be an upthrust or a false break of the upper trendline and then a downward break from the pattern), I do believe there will be strong bullish action following that movement. The final possibility would be sideways action or sideways action that is falling using the green trendline as support.
Previous Analysis:
Comment:
Any rounding would be acceptable too presented as such: