Hello, Skyrexians!
Today we have another one "perspective" crypto to overview. This is $STRK token. Since Binance listing price dropped significantly and continue dropping now. Entire crypto market dump boosted the STRK sell-off. Today we will analyze in details this asset and try to understand will this coin pump or die. It's vital for successful cryptocurrency trading to consider all possible scenarios.
Looking at the most of ideas on this asset we can conclude that most of the crypto trading strategies gave the advice to buy this coin when price was above $1.5. Obviously, it's not profitable crypto trading strategies. Even automate crypto trading of most cryptocurrency trading platforms fails to predict the price of this asset because after dumping at 50% it continues dumping, which is not likely according to the most crypto trading algorithm. That's why most of automated trading bots and grid bot faced with losses for this asset.
The exception is the ai crypto trading bot which takes into account the Elliott wave, the key feature of successful crypto trading. Today we consider STRK price action using advanced technique. Let's go!
STRK dump structure
Let's use the 1D time frame to analyze this downtrend. Fortunately, it has the clear Elliott waves structure. Awesome oscillator helps us to find the most impulsive wave 3, this is the min value. After this the price formed the flat or triangle wave 4. If crypto has already significantly drop it tends to form the flat corrections without big retracement to the upside. This is because most of early bulls have been locked in their position and they shall be disappointed before reversal.
Now we can see three strong signs of trend reversal. Awesome oscillator crossed zero line after wave 3 bottom reaching, it has printed bullish divergence and the momentum now is upward. In most of cases these are enough to make a decision about the entering trade, but we will make the deep dive further in different indicators.
Early reversal detection with MFI
Which indicator has high confluence setup for the potential reversal when everyone still calling in the direction of a trend? Our answer is MFI! Look the the sequence of the squat (red) bars at the bottom.
It means that this is a real war between bulls and bears. Decreasing MFI shows us that selling volume cannot move the price efficiently. Moreover we have seen two confirmed bullish reversal bars on this price move. We can assume that the first bar was the subwave 3 finish, too early to enter. The second one is the wave's 5 end in our opinion. Also, all these actions was below the Alligator which is a strong confirmation of our thoughts.
Is wave 5 really finished?
To understand if the wave 5 is finished we have to see at the subwaves inside. Wave 5 is the impulsive one and has to have 5 waves inside.
Looking at the chart we can see that on 7h time frame there is a divergence between waves 3 and 5. AO crossed zero line at the wave 4. As usual, wave 4 is flat and does not allow traders to escape the losing long trades. Current price action looks not so impulsive, but if price is able to show us the huge green candle, it can be counted as the wave 1 of the bull run.
Conclusion
Most of you ask me about the potential price targets if my idea with the incoming bull run is right. This asset has not enough history to set up the long term target. Logically I can tell that if price will reach $1.5 it will likely also hit the $4-5 zone. The logic is simple: most of early bulls entered the position above $1.5. Now it seems like they don't believe in this project anymore. If market maker allows them to have a break even, they will likely close trades. This is a great liquidity for large player. Whales will buy all this volume and having almost all emission in their hands can sent STRK very high. Anyway we will see how the price is gonna move and make an update if something is changed.
Best regards,
Skyrex Team
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