ZetaChain could face major market sentiments.
Hello, fellow traders!
This is my analysis on ZetaChain (ZETAUSDT).
1️⃣ Analysis
Price has been in a downtrend since February to August. In August, we see an attempt of a breakout with significant volume spike. The breakout seemed like a failure until the second breakout took place at the end of the month which then converted the resistance line (red trendline) into a support line of a new trend. We now see an ascending triangle pattern which the price is reacting to in high accuracy.
2️⃣ Expectations
The price might move sideways longer but breakout is expected in near future for either direction. Upper breakout could indicate start of a strong uptrend. However, major resistance at 1.1406 (red dotted line) is expected. Lower breakout could indicate a stronger downtrend. Although major support at 0.3348 (green line) is expected, failure of an attempted reversal might trigger more aggressive downtrend resulting in a new ATL below the green line.
3️⃣ Key approach
Our first strategy is to enter short in lower breakout. Our target would be 0.3348, major support level. Price may rebound upon touching the level. This could open up new long opportunities, however keep in mind that downtrend might continue below the level. Failed reversal might enhance the aggressiveness of the original trend.
4️⃣ Other approach
Our second strategy is to enter long in upper breakout. Our initial target would be 1.1406, major resistance level. Our next and final target would be 1.7, right below the demand zone. However, I find this approach risky and would prefer the first one.
5️⃣ Considerations
There is an announcement that ZetaChain is unlocking 54 million tokens on December 1st. This could possibly trigger the breakout.
💡 ZetaChain is a good example that volume spike doesn't always guarantee a reversal of trend. This is a valuable lesson to learn: I hate to mention
BICOUSDT.P so many times, but we see a similar pattern in Biconomy - breakout with volume spike after months of downtrend and resistance line being respected. Of course, we cannot say ZetaChain is foreshadowing Biconomy because they are totally different cryptos. But at least it gives us a glimpse of what to expect.
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
Colossians 3:12
This is my analysis on ZetaChain (ZETAUSDT).
1️⃣ Analysis
Price has been in a downtrend since February to August. In August, we see an attempt of a breakout with significant volume spike. The breakout seemed like a failure until the second breakout took place at the end of the month which then converted the resistance line (red trendline) into a support line of a new trend. We now see an ascending triangle pattern which the price is reacting to in high accuracy.
2️⃣ Expectations
The price might move sideways longer but breakout is expected in near future for either direction. Upper breakout could indicate start of a strong uptrend. However, major resistance at 1.1406 (red dotted line) is expected. Lower breakout could indicate a stronger downtrend. Although major support at 0.3348 (green line) is expected, failure of an attempted reversal might trigger more aggressive downtrend resulting in a new ATL below the green line.
3️⃣ Key approach
Our first strategy is to enter short in lower breakout. Our target would be 0.3348, major support level. Price may rebound upon touching the level. This could open up new long opportunities, however keep in mind that downtrend might continue below the level. Failed reversal might enhance the aggressiveness of the original trend.
4️⃣ Other approach
Our second strategy is to enter long in upper breakout. Our initial target would be 1.1406, major resistance level. Our next and final target would be 1.7, right below the demand zone. However, I find this approach risky and would prefer the first one.
5️⃣ Considerations
There is an announcement that ZetaChain is unlocking 54 million tokens on December 1st. This could possibly trigger the breakout.
💡 ZetaChain is a good example that volume spike doesn't always guarantee a reversal of trend. This is a valuable lesson to learn: I hate to mention
BICOUSDT.P so many times, but we see a similar pattern in Biconomy - breakout with volume spike after months of downtrend and resistance line being respected. Of course, we cannot say ZetaChain is foreshadowing Biconomy because they are totally different cryptos. But at least it gives us a glimpse of what to expect. React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
Colossians 3:12
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.