Hello $GMT
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Analyzing recent market movements in the cryptocurrency, a breakout from a falling wedge pattern sparked a short-lived rally. However, challenges arose as the price encountered resistance at a critical long-term support and resistance zone. Notably, a bearish divergence unfolded, marked by the price achieving higher highs while the GAS stochastic oscillator formed lower highs.
This led to a decisive break below the $0.30 support level. Yet, an intriguing development emerged on the daily chart – a bullish divergence. The price trended lower while the stochastic oscillator showed higher lows, hinting at a potential reversal.
Zooming out to the 7-day chart, a significant support and resistance zone from $0.40 to $0.51 caught attention. Here, a hidden bullish divergence materialized, indicating the price’s reluctance to establish new lower lows despite the oscillator forming lower lows.
Considering these dynamics, traders might eye a price target for the falling wedge breakout between $4 to $5. The 7-day chart’s hidden bullish divergence and the daily bullish divergence present interesting signals for potential upward movement. However, cautious monitoring of the noted support and resistance zones remains crucial for a comprehensive trading strategy.
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