After a sharp increase in price by hundreds of percent, the coin entered a normal correction and corrected to the 382 descending Fib and 618 ascending Fib levels, where it found support and stopped falling, completing an Elliot wave cycle. We have two scenarios in terms of waves. In the first one, we've completed the ABC correction, as indicated on the chart, and are ready to start a new cycle. In the second scenario, we're in wave A and preparing for a bounce in wave B.
We're in a bearish triangle pattern and are consolidating within it, which should lead to a strong movement of the asset in the medium term. Volumes have dropped significantly and market participants are catching their breath and regaining strength for further movements. The $0.0000011288 level is key for buyers, as a move below it'll trigger a cascade of liquidations and a drop in the asset by 30% or more.
Both moving averages are above the chart and gradually moving higher, but the movement dynamics are positive and the moving averages are steadily descending towards the chart. The Choppiness Index (CHOP) signals the asset's readiness for movement, as the indicator's values have reached the area of maximum - the highest level of trend roughness.
Volume Delta is positive and the movement dynamics are great, but fresh liquidity inflow is important. The Directional Movement Index (DMI) indicates further growth of the asset, as the +DI line and -DI line are rising together, creating excellent potential conditions for the asset's growth. There's an unfilled lower gap and it's possible that sellers may push us towards it, leading to a trend reversal and the start of a downward trend.
As a result, the situation is good for buyers, but it is important to hold above the 382 Fib and 618 Fib levels, as these are two key support levels, and to break the descending triangle pattern in the short term to confirm the bullish trend. For sellers, it's necessary to push us below the $0.0000011276 level.
