After pullbacks from ATH in January(4TH), which correlated with the rest of the crypto market, XEM has begun to show signs of trend reversal with a storng support level at 0.00002999฿.
The movement of the price trend or emerging trend can be determined using Ichimoku Cloud and chart pattern.
In the 1D time frame, price has maintained two resistance and is currently consolidating, forming a small pennant flag pattern(check previous post to know more about flag pattern).
The pole looks small, while the flag looks like a small symmetrical triangle.AS shown below:
With the use of ichimoku cloud setting, price is currently bouncing at the kijun(red line) holding a strong support level. A bullish TK cross( first BULLISH TK CROSS this year) will likely happened by next week, bringing the price to burst in the cloud(cloud resistance). A long entry can be made based on the Edge to Edge principle. This trade is triggered when price breaches Cloud resistance and has a target of the opposite edge of the Cloud 0.00008322฿.
These trades have a higher probability of success when the TK cross is also bullish, which is not currently the case( expected to cross by next week)
TECHNICALS suggest bullish reversal with optimal short entries soon based on the above Chart Patterns and Ichimoku Cloud.
A short term target of 0.00008322฿.
SELL: 0.00007294฿ - 0.00008322฿
STOP LOSS: 0.00002999฿
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.