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This Pattern Repeats With New Projects - How To Find The Perfect Entry Point?
Knowing this feature, you'll be able to find the perfect buying zones! Here are Top-5 examples of new projects that have come out recently and this pattern has worked:
An important note: Everything written here is purely my observation based on my experience and analysis of price behavior. Never follow other people's advice blindly, always do your own research. So now, I'll try to convey to you my view of the charts, let's get started! The first coin on my list - $APT
Bitcoin rose 30% in the final quarter of last year after breaking through a resistance line.
Right now, the situation looks similar. Let me explain:
First, you can see consolidation forming in Q2-Q3 2023. After leaving this zone, the price began to rise throughout Q4.
Secondly, right now we are in a similar consolidation. This year we can note the formation of the same pattern from Q2 to Q3.
Looking at these analogies we can expect growth in Q4 2024. Apparently, we have to break through the red resistance line and maybe then we will see a rise of 30% or higher.
It is worth noting that an important psychological mark of 100k$ stands at the exit of the marked growth potential.
Coincidence or a pattern?
I don't know for sure but as I pointed out, a lot of factors indicate just that scenario.
So if my observations are correct, we could see the $100,000 mark crossed as early as the end of this year.
Do you believe that Bitcoin will touch $100,000 this year?
Firstly, it's the chart - the coin has dropped by 90% from its ATH.
A corridor has been formed where volumes are increasing now.
It is a bullish factor and there are divergences on the daily chart.
Secondly, XAI is a project from the Arbitrum team.
Thirdly, XAI at one time also poured well to those who held their node - their validators directly got a dozen Xs, and probably they were the ones who shed the price.
Now, spot-buying looks very attractive from the point of view of both technical analysis and fundamental analysis.
The project is being built by an experienced team with already existing experience.
As you might know, the “double bottom” pattern is often formed before the trend change and price reversal.
The potential of this pattern is equal to the first part of it — with the orange arrows I've highlighted the approximate area.
The ultimate target of this potential is located at the approximate mark of $40, approximately there will be local resistance, so this zone will be the target zone.
I now consider the trend to have changed to an uptrend definitively.
$XLM - I'm holding it on the spot with an insane potential!
Stellar has the same formation as $XRP in the long-term view.
Given Ripple's recent win, I can't pass by these two similar projects so they are both in my long-term portfolio. I have to say that I have an even split of funds between these two coins.
So what about the XLM chart? Let's consider it from the technical analysis point of view:
We can see that globally the price is forming a similar triangle formation as on the XRP chart.
Since the past local low was put in the $0.07 area, I put a conditional cancel zone for this scenario beyond that level. I mean $0.067 to be exact.
In any case, even if the structure breaks and the price goes below my level, I will still continue to hold $XLM because it corresponds to my long-term plans.
My first potential profit-taking zone will be $0.154, but I will continue to hold the main volume up to the level of $0.79-$1.
The most important thing I want to convey is to pay huge attention to your risk management and strategy. Without systematic work and a clear plan, you will not be able to stay on the market for long.
You can literally plan your investments in such a way that your long-term investments will override your short-term speculative ones by simply holding them for the long haul.
Statistically, the most profitable investments are “buy and forget” investments. That's exactly the case. We won't be back here for a while.
Firstly, it's the chart - the coin has dropped by 90% from its ATH.
A corridor has been formed where volumes are increasing now.
It is a bullish factor and there are divergences on the daily chart.
Secondly, XAI is a project from the Arbitrum team.
Thirdly, XAI at one time also poured well to those who held their node - their validators directly got a dozen Xs, and probably they were the ones who shed the price.
Now, spot-buying looks very attractive from the point of view of both technical analysis and fundamental analysis.
The project is being built by an experienced team with already existing experience.
You can see how the price has reached the 0.0006 zone, which is equivalent to a -60% decline from the initial values.
This is the area where I am buying this coin because of my previously described “-60% pattern”.
It is also worth noticing the lower downtrend line, which the price has touched.
Of course, there are no signs of trend reversal yet, but here it makes sense to pick up a coin for medium or long term.
I believe we are at or near the bottom, now I would like to see a rise.
But not immediately, consolidation in this range is possible, most likely the big players will pick up within these values, stuffing their bags before rising.
As you might know, the “double bottom” pattern is often formed before the trend change and price reversal.
The potential of this pattern is equal to the first part of it — with the orange arrows I've highlighted the approximate area.
The ultimate target of this potential is located at the approximate mark of $40, approximately there will be local resistance, so this zone will be the target zone.
I now consider the trend to have changed to an uptrend definitively.
You can see how the price has reached the 0.0006 zone, which is equivalent to a -60% decline from the initial values.
This is the area where I am buying this coin because of my previously described “-60% pattern”.
It is also worth noticing the lower downtrend line, which the price has touched.
Of course, there are no signs of trend reversal yet, but here it makes sense to pick up a coin for medium or long term.
I believe we are at or near the bottom, now I would like to see a rise.
But not immediately, consolidation in this range is possible, most likely the big players will pick up within these values, stuffing their bags before rising.
One of the best coins of the past bull market in 2021, is falling for the third year.
After a slight rise earlier this year, the price formed a "Head and Shoulders" technical analysis pattern.
As a result, the potential of this formation was realized and now the price has reached the global support level.
I am looking at spot-buying, starting from the current values and up to the level of 3.50-4.00$.
I consider this area attractive because:
— Strong support level; — High risk to potential profit ratio; — The sentiment (fear) of many traders and investors about buying this coin.
In my opinion, the price may stab at the highlighted zone to gather liquidity below for more panic, after which it may turn around and go up, at least to the previous local high, to the “head” area.
DOT looks very weak indeed, that's why I'm using this opportunity for a position set.
$AAVE is strong in spite of the rest of the market.
This coin was quickly repurchased during yesterday's drop and I continue to keep it in my portfolio.
In the long term, I am counting on super profits as I believe its potential is much higher.
Looking at the project metrics from an analytical perspective, TVL and Revenue continue to grow. So given the expected Ethereum growth, I can't stay on the sidelines.
Therefore, past analysis and goals are relevant. For clarification, this is a logarithmic chart.
The chart shows the “Head and Shoulders” pattern formation, which usually indicates a trend reversal. In our case, the downtrend is confirmed by the neckline breakdown by the price level.
The downside potential is usually equal to the “head” of the figure.
The first target will be the zone at $3.94 - 0.5 Fibonacci value.
This road will be opened after the neckline retest and the subsequent successful breakdown of level 0.382.
The second downside target is the zone at $3.30 - here the downside potential ends, according to the “Head and Shoulders” pattern, and also, the strong value of 0.618 Fibonacci golden ratio is located in this area.
Usually, there is a rebound from it, or the price just corrects to this level and continues the global upward movement.
The third potential target could be the zone at $2.80 - there is a strong support level (red rectangular zone), which is not easy to pass.
But this outcome, I believe, is unlikely.
Further buying can be considered based on the first two major ranges.
FTX promises to start repaying its creditors in the 4th quarter of this year -the total amount will be $16 billion!
Do you realize where all this new liquidity is going to flow?
This is a very large amount of money by the standards of the whole sector, people will probably put this money into altcoins or bitcoin, because they will want to keep their funds or multiply them at all.
This could trigger that bull run at the end of the year, so I think this is positive news.