Will the correction of the first wave of $KAD end at the 68.2% Fibonacci retracement?
The first bullish wave from May 1st (0.782) to May 5th (0.941) amounted to 0.159.
68.2% represents a decline to the level of 0.843.
The 68.2% level is significant because it is one of the Fibonacci retracement levels commonly used in technical analysis to forecast potential support or resistance levels in price movements. In this scenario, 68.2% signifies a decline to the level of 0.843, which is important because today's minimum is 0.843, suggesting that the price may find support at this level.
Today's minimum is 0.840 !!!!!!!!!!
The next Fibonacci level is 78.6% at the level of 0.816.
After a significant upward move, retracement levels can indicate potential support zones where the uptrend may resume. Conversely, after a strong downtrend, they can highlight resistance levels where selling may emerge again.
Market sentiment tends to determine the significance of each Fibonacci level. Strong retracements (23.6% to 38.2%) typically occur during confident market movements, and weaker retracements (61.8% to 76.4%) often take place during a period of hesitation.
The 50% level and 61.8% “golden ratio” tend to be key tests before reaching the 100% retracement level, which usually signals a primary trend reversal.
