On calendar 5 July, and on the chart is still a fight in the form of consolidation, which lasts almost 2 months. Today, sellers are trying to go beyond consolidation, but pay attention with which volumes? Practically, a whole week from the previous analysis, was accompanied by low volumes of trading and today’s breakdown does not inspire confidence in us yet:
A wedge was formed on a 4-hour timeframe. After a sharp fall from the price of USD 0.49, the next wave of the fall began from 29 June, and it is clearly weaker and less aggressive than the previous one:
Taking into account the nature of the fall, this is the first signal that consolidation will continue, at least and buyers again will try to test USD 0.51.
So far, a weekly candle confirms our belief in the continuation of consolidation, but we should not forget that in the crypto world very often happens miracles in the weekend and a weekly candle may look radically different 2 days later than now:
As for the mood of market participants, buyers continue to close their marginal positions, but they do it not as aggressively as last week:
Marginal positions of sellers are trying to get out of the purple zone, but it is noticeable that the mood of sellers is ambiguous:
According to wave analysis, globally, the situation has not changed. Sellers have formed a wave (e) and now comes the moment of truth. If buyers do not return the price above the lower trend line, then the first stop of the price will be at the mark of USD 0.33:
Otherwise, we wait for another wave up, which after the breakthrough of USD 0.5 has a growth potential of up to USD 0.78:
Also, as we see from the previous chart, after leaving the local consolidation, the price will go to global consolidation, at a range of USD 0.31-0.51. Therefore, it remains to wait for the power of one of the parties to make profitable deals. The most important thing is not to wait until November, because such a perspective exists:
About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Chart Courtesy: TradingView