EIGEN / TetherUSLong
$EIGEN - Consolidation Falling Wedge
Updated
EIGEN - Consolidation Falling Wedge
Overview: The Consolidation Falling Wedge is a bullish technical chart pattern that often signals a potential reversal from a downtrend to an uptrend. When observed in the context of EIGEN, this pattern suggests that the crypto may be approaching a critical turning point after a period of consolidation.
Key Characteristics:
1. Trend Lines:
Descending Upper Trend Line: Connects the series of lower highs.
Descending Lower Trend Line: Connects the series of lower lows.
Both trend lines converge, narrowing the price range.
Implications for EIGEN:
Bullish Reversal Signal: The falling wedge suggests that the bearish momentum is weakening. As the price consolidates within the narrowing wedge, buyers may be gradually gaining control.
Potential Breakout: Traders watch for a breakout above the upper trend line with increased volume as a confirmation of the bullish reversal. This breakout can signal a good entry point for long positions.
Price Target: The anticipated move after the breakout is often projected by measuring the height of the wedge at its widest point and adding it to the breakout point.
Trading Strategy:
1. Entry Point: Consider entering a long position when the price breaks above the upper trend line of the falling wedge, accompanied by a surge in volume.
2. Stop-Loss: Place a stop-loss order below the lower trend line of the wedge to manage risk in case the breakout fails.
3. Profit Target: Set a profit target based on the measured move from the wedge’s widest point.
Overview: The Consolidation Falling Wedge is a bullish technical chart pattern that often signals a potential reversal from a downtrend to an uptrend. When observed in the context of EIGEN, this pattern suggests that the crypto may be approaching a critical turning point after a period of consolidation.
Key Characteristics:
1. Trend Lines:
Descending Upper Trend Line: Connects the series of lower highs.
Descending Lower Trend Line: Connects the series of lower lows.
Both trend lines converge, narrowing the price range.
Implications for EIGEN:
Bullish Reversal Signal: The falling wedge suggests that the bearish momentum is weakening. As the price consolidates within the narrowing wedge, buyers may be gradually gaining control.
Potential Breakout: Traders watch for a breakout above the upper trend line with increased volume as a confirmation of the bullish reversal. This breakout can signal a good entry point for long positions.
Price Target: The anticipated move after the breakout is often projected by measuring the height of the wedge at its widest point and adding it to the breakout point.
Trading Strategy:
1. Entry Point: Consider entering a long position when the price breaks above the upper trend line of the falling wedge, accompanied by a surge in volume.
2. Stop-Loss: Place a stop-loss order below the lower trend line of the wedge to manage risk in case the breakout fails.
3. Profit Target: Set a profit target based on the measured move from the wedge’s widest point.
Trade active
Went a little bit lower than what I draw, it was probably more a channel than a falling wedge. Still valid, still long on EIGEN. 
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