Long

$CLOAK.X Potential Breakout

Updated

Nice cup and handle forming here. Trying to find the bottom of this correction. Once it does we can see some nice gains from CLOAK. It's a risky trade to get in now as it's still correcting but the MACD and RSI suggest it's close to bottom. This coin has been on Binance about a week now and they tend to moon within 2 weeks. The general pattern is pump/dump/bottom/consolidate/moon. Watch closely for the bottom to come soon. It will likely consolidate a little after which will make a good entry point. This trade will also rely heavily on BTC stability.

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We may have hit the bottom here of the handle. Its makes sense with my EW count. Look for an ABCDE consolidating formation as seen below:

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Also, watch BTC closely. If BTC dumps or pumps drastically it can throw us out of this consolidation to a lower support.

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This trade requires patience. If you’re not willing to hold through a loss do not enter yet. Of course, the other side of that is you could miss the run. Play at your own risk and always have a strategy.

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Consolidating nicely.

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We're getting some nice movement. This is just the beginning. I'm holding!

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There are two options that can play out here according to Elliot Wave theory. On the bigger picture we have either started wave 3 up (yellow) and are on subwave 2 retracement (dark blue), or we have not finished the big wave 2 (yellow) and are on subwave C retracement (light blue) on our way to finish wave 2 lower. Considering this a new a Binance listing and the coin has good fundamentals, I'm leaning bullish which would go with my original chart. But I wanted to show both options so anyone in a trade can be prepared for the bearish scenario. We should know in the next 12-24 hours which scenario is playing out.

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We're getting strong support at 16k sats and the current 4hr candle is looking like a dragonfly doji reversal candle. We will know soon but a wave 3 up looks to be incoming.

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Moon launch is delayed as BTC corrects. Short term bearish scenario I talked about is playing out. I've updated my EW count for the current situation. I'm still bullish and holding as I got a nice entry, but DYOR and do what works for your strategy.

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BTC moving is really affecting this. CLOAK does not look good at the moment and I expect BTC to rise higher. I sold here and will look for a lower re-entry.

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CLOAK showing bullish divergence:

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Possibility:

I'm still holding. This is a longer term play for me but DYOR

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Binance announces a CLOAK volume competition 5/17 - 5/23. Hold on tight for increased volume and volatility. This is a whale's contest so be very careful if you're trying to flip. Contests are a pain in the ass but it will get this coin the exposure it needs.

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