This week sellers managed to return the price below USD 0.128-0.13. In addition, buyers did not keep the black trend line, which they have kept from 17 May and during the previous two days, when trying to return the price above the trendline, buyers showed that they currently have not enough strength to do this. Attack of sellers ended at a price of USD 0.117. This is the third time in the last three weeks when the price jumped from this level, but in previous times, the price was moving within the triangle. Now we see that sellers broke the triangle down and buyers, after a little consolidation of USD 0.12-0.123 try to organize a counterattack, but it looks like that this consolidation is not enough to start a good growth and breakthrough USD 0.128-0.13:
However, we want to note the fact that the price range of USD 0.128-0.13 is easy to break up and down and it loses its value as a range from which one should wait for a signal to make a decision. Now we are clearly seeing a broad consolidation with a range of 23% from USD 0.117 to USD 0.144. Since sellers were unable to break the bottom line of this consolidation, then the chance for buyers to try again to test USD 0.144 remains high, even if you look at the fact that now the volume of buyers is very small. When prices are in consolidation, the volumes and the look of the candles do not work as well as during the trend movement. It matters only the breakthrough of the range and its fixing:
If sellers try USD 0.117, we expect a fall to USD 0.094-0.096. From this zone, the price often jumped when it was going up and down. In addition, in this price zone there is a black trend line, which buyers protect from February 2019:
During the breakthrough of USD 0.144, we expect a test of USD 0.18-0.21, which we wrote about in the previous analysis.
If you analyze the weekly timeframe, then for the third week the situation is not changing globally:
This week is fairly small in terms of activity and low volumes.
On the wave analysis, at a price of USD 0.144 there is a critical point in which the new wave of growth is equal to 38.2% of the length of the previous wave:
It is confirmed by the fact that with the breakthrough of the current consolidation, with clear targets, we can decide concerning buying or selling this coin. Meanwhile, holding mode or trading from critical points.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Charts Courtesy: TradingView