Recent analyses suggest that VELODROME may be entering a corrective phase, possibly aligning with an Elliott Wave 4 correction. Such corrections typically follow a three-wave pattern (A-B-C) and can retrace a portion of the preceding Wave 3 advance. This phase often presents opportunities for traders to position themselves for the subsequent Wave 5 upward movement.
Elliott Wave Theory is a technical analysis tool that identifies recurring wave patterns in financial markets, aiding in predicting future price movements. Applying this theory to VELODROME can provide insights into potential market trends.
As of December 20, 2024, VELODROME experienced a significant surge, rising by approximately 26.29% to $0.2354, with a 24-hour high of $0.2370. This rally from a low of $0.1864 may indicate the completion of Wave 3, suggesting that a Wave 4 correction could be forthcoming.
Technical indicators provide additional context:
Relative Strength Index (RSI): A neutral reading suggests neither overbought nor oversold conditions, indicating potential market equilibrium.
Moving Averages (MAs): The majority indicate a 'Buy' signal, reflecting recent bullish momentum.
While these indicators offer valuable insights, it's essential to consider them alongside broader market trends and other technical analysis tools. Elliott Wave Theory, combined with current technical indicators, suggests that $VELODROME may undergo a corrective phase before potentially resuming its upward trajectory.