LDO rose more than 40% in two days! Now it keeps falling, what will happen next?
First, analyze it according to the logic of the technical side. When a market rises, it is normal to have a correction, which is conducive to the subsequent market rise. Such a trend is often a healthy performance
Currently, it has fallen from the highest point of 4.152 to the current lowest point of 2.0428, and the decline has fallen by 15%. Although the amplitude is large, if we analyze objectively, has this decline fallen back to the low point of the current market trend? Obviously not
Looking at Fibonacci, we can see that the 0.5 of this round of correction resonates with the downward trend line, which can be regarded as a relatively strong support
If the correction trend continues in the future, pay attention to the area below 0.618-0.666. It is very likely to go back to test the upward trend line and reverse the market , out of the five-wave pattern, to the high point of 3.02, which is also the second highest point after the downward trend line, it is a very good stop-profit point
When will the reversal pattern come out, we should pay more attention to whether the one-hour level trend will break through the previous high point and not create a new low point. Once it comes out, the reversal market will come
In the five-wave pattern, the area around 1.8482 is an important area. After breaking through, this expectation does not exist. However, the closer to the high point of wave 1, the better the entry point
