R1 - Resistance (Down trend; lower highs)
R2 - Resistance (5585 sat)
S1 - Support (2885 sat)
S2 - Support (2100 sat)
T1 - Trend channel (upper)
T2 - Trend channel (lower)
FB - False Breakout / Bull Trap
This project has cooled off considerably after reaching 9400, where it peaked after going 200% from Feb 6 to Apr 20.
Scenario 1 (green)
T1 holds as a line of support and the price rides this slowly up, building momentum, before eventually breaking up again. Look at previous pumps. It usually moves sideways a bit before it pumps, so be patient with choosing your buy point.
Scenario 2 (red)
Price falls into a previously defined trend channel, bouncing between these lines of support (T2) and resistance (T1), before eventual breakout.
Scenario 3 (purple)
The price will fall through the trend channel (T1 and T2), and we get a reversal off R1, a previously strong line of resistance. Note R1 going all the way back to Jan 2018 and continuing this strong line of resistance until it broke out for good on Feb 2019. Also note, convergence of R1 and S1. This scenario has the possibility of dragging the price all the way down to S1 or S2, if T2 acts as resistance. If this occurs, look for very small gains, maybe 5-10%, and then take profit and reevaluate.
***
Make sure you get good confirmation that the reversal has occurred, before going long. Notice this coin has had several false breakouts in the past, and it also likes to move sideways a bit, before it goes steep. This is a daily chart, so it's a long play for easy money and minimal babysitting for Scenarios 1 and 2.
R2 - Resistance (5585 sat)
S1 - Support (2885 sat)
S2 - Support (2100 sat)
T1 - Trend channel (upper)
T2 - Trend channel (lower)
FB - False Breakout / Bull Trap
This project has cooled off considerably after reaching 9400, where it peaked after going 200% from Feb 6 to Apr 20.
Scenario 1 (green)
T1 holds as a line of support and the price rides this slowly up, building momentum, before eventually breaking up again. Look at previous pumps. It usually moves sideways a bit before it pumps, so be patient with choosing your buy point.
Scenario 2 (red)
Price falls into a previously defined trend channel, bouncing between these lines of support (T2) and resistance (T1), before eventual breakout.
Scenario 3 (purple)
The price will fall through the trend channel (T1 and T2), and we get a reversal off R1, a previously strong line of resistance. Note R1 going all the way back to Jan 2018 and continuing this strong line of resistance until it broke out for good on Feb 2019. Also note, convergence of R1 and S1. This scenario has the possibility of dragging the price all the way down to S1 or S2, if T2 acts as resistance. If this occurs, look for very small gains, maybe 5-10%, and then take profit and reevaluate.
***
Make sure you get good confirmation that the reversal has occurred, before going long. Notice this coin has had several false breakouts in the past, and it also likes to move sideways a bit, before it goes steep. This is a daily chart, so it's a long play for easy money and minimal babysitting for Scenarios 1 and 2.