Identifying the Chart Pattern and analysing the price action on the basis of given indicators:
- Current Trend: The chart shows an upward trend with a significant increase in price, indicating bullish momentum.
- Candlestick Formation: The latest candlesticks show some signs of consolidation after a sharp rise, but the overall trend is upward.
Indicators Analysis
1. Exponential Moving Averages (EMA):
- EMA(7) (Yellow Line): 8.198
- EMA(25) (Pink Line): 7.673
- EMA(99) (Purple Line): 7.006
- The price is above all EMAs, indicating strong bullish momentum. The shorter EMA is above the longer EMA, confirming the uptrend.
2. Relative Strength Index (RSI) (6): 69.406
- The RSI is close to the overbought territory (70), which could suggest that the asset is getting overbought, and there might be a potential for a short-term correction.
3. Stochastic RSI:
- K Line (Yellow): 63.361
- D Line (Purple): 80.475
- The Stochastic RSI is high but not yet overbought, indicating that the bullish momentum may continue in the short term.
4. Volume:
- Volume shows a significant increase during the price spike, which supports the bullish move. However, the latest bars show a decrease in volume, indicating a potential slowdown in buying pressure.
Price Prediction
Next 4 Hours:
- Given the strong bullish indicators, the price is likely to continue its upward movement in the short term, although it may face some resistance and minor pullbacks due to the high RSI and slightly decreasing volume.
- Target Price: It could test the recent high of 8.538 or move slightly higher towards 8.6-8.7 before any significant pullback.
Next 1 Day:
- Over the next day, the price might experience a correction or consolidation due to the overbought RSI and the recent high price increase.
- Target Price: The price could stabilize around the EMA(7) at 8.198 or slightly lower at around 7.8-8.0, before deciding the next major move. If bullish momentum continues and volume increases again, it might break above 8.538 and test higher levels around 8.7-9.0.
