Technical Analysis of Velas (VLX) 4-hour time frame

8月5日

Descending Channel: The price is currently moving within a descending channel, indicating a downtrend. However, the annotation suggests a potential bullish breakout if certain conditions (such as deploying a bridge with Solana) are met.

Support and Resistance Levels: The chart shows several horizontal lines representing support and resistance levels:

Resistance at approximately $0.011946, $0.009130, and $0.007360.
Support at approximately $0.005267 and $0.003000.

Indicators Used:

Market Cipher B: Shows divergences and other momentum oscillators.

RSI (Relative Strength Index): Currently around 23.79, indicating oversold conditions.

Stochastic Oscillator: Indicates a possible reversal, with current readings suggesting a bottoming out.

Annotated Points:

A "Strong Buy Position" is indicated near the bottom of the descending channel, suggesting this as a potential entry point for a long position.
A bullish movement is expected, provided there is a catalyst (like a bridge deployment with Solana).

Trading Plan
Intraday Trading
Entry Point: Look for entry around the current support level of $0.005267, especially if there are bullish signals like a bullish divergence on Market Cipher B or a crossover on the Stochastic.
Target Levels: Consider scaling out of positions near the immediate resistance at $0.007360.
Stop Loss: Place a stop loss slightly below the support at $0.005267 to minimize risk.
Additional Notes: Since RSI is oversold, any bounce could be sharp, so be ready to manage trades actively.

Scalping
Entry Point: Enter positions on short-term oversold conditions, especially when the Stochastic Oscillator crosses upwards in the lower range (20-25).
Target Levels: Aim for quick profits, targeting 1-2% moves within the support-resistance range.
Stop Loss: Tight stop loss to avoid getting caught in a larger downward move, around 0.5% below the entry price.
Additional Notes: Monitor the price action closely around key support and resistance levels, and consider using a trailing stop to lock in profits as soon as the trade moves in your favor.

Swing Trading
Entry Point: Consider entering a position near the current support level or after a confirmed breakout above $0.007360.
Target Levels:
First target at $0.009130, the next significant resistance level.
Second target around $0.011946 if momentum continues.
Stop Loss: A stop loss slightly below $0.005267 or based on a confirmed breakdown of the descending channel.

Holding Period: Expect to hold the position for several days to weeks, depending on how the market evolves and any news regarding partnerships or technological developments.


Long Position Advice: Given the current oversold conditions on both RSI and the Stochastic Oscillator, there is a good probability of a short-term bounce. However, the broader trend remains down within the descending channel, so caution is warranted.

Risk Management: Ensure you have clear stop losses and are ready to exit if the price falls below key support levels, as the descending channel indicates the possibility of continued downtrend until a breakout is confirmed.

Catalyst to Watch: Keep an eye on any news or announcements regarding Velas, particularly related to the Solana bridge, as this could trigger the anticipated bullish move.
Given the indicators and market structure, a cautiously optimistic approach seems prudent. If the price breaks out of the descending channel with volume, a more aggressive long position could be considered.