OGNUSDT forming bullish BAT for upto 71% moveHi friends hope you are well and welcome to the new update on Origin protocol. Recently the Origin token has surged more than 311%. In today's post we will try to understand why it is surged and what next can be happened.
Formation of bullish harmonic patterns:
If we watch the daily chart then price action of OGN token 1st formed a bullish Shark pattern and within the potential reversal zone of shark it formed another harmonic bullish BAT pattern. And finally the price action took a powerful bullish divergence from the potential reversal zone of bullish BAT and the potential reversal zone of bullish Shark as well and produced more than 311% rally.
The significance of 25 SMA:
If we place the simple moving average with the time period of 25 on the same daily chart. Then this moving average has a very much significant role in the formation of these harmonic patterns. For example when the price action took first bullish divergence and form the initial leg. Then it retraced up up to 25 simple moving average. And here 25 simple moving average pushed the price action up to form the B to C leg of bullish Shark. If we watch the BAT formation then after initial leg the price action moved on the 25 simple moving average and using the help of 25 simple moving average support it formed the B to C leg. Therefore this time there is a possibility that after this move the 25 SMA will again move up to provide the support to the price action to forming some other harmonic pattern.
More over the 50 SMA is also moving up to form bull cross with 100 SMA that can start another powerful rally.
New harmonic move:
Now if we switch to the small time period 4 hour chart. Then it can be observed that the price action is forming another harmonic BAT pattern. After initial leg the second leg is retraced between 0.382 to 0.50 Fibonacci level this is a first confirmation of bullish BAT. And then the price action has been projected between 0.382 to 0.886 Fib projection of A to B leg. This is the second confirmation of Bat. Now the price action should be retraced between 0.786 to 0.886 Fib retracement level to complete the bullish BAT. We also have the 50 and 100 simple moving averages between the potential reversal zone and the 200 simple moving average below the PRZ level. Therefore it will be difficult for the priceline to break down the potential reversal zone after having such strong supports. However we should set the maximum extent of the potential reversal zone as stop loss because if it will be broken down then it can go for the formation of bullish Crab pattern. As per Fibonacci sequence the potential reversal zone or buying zone and the Fibonacci projection or sell zone are as below:
Buy between: $0.2825 TO $0.2561
Sell between: $0.3454 to $0.4391
So this very short term 4 hour time period chart has the potential to produce up to 71% bullish rally. However if the price action will cross up the 0.786 Fibonacci projection level then price action can produce more big and powerful rally.
Conclusion:
The Origin protocol has strong reasons to continue the bullish move. Because it has upcoming events and it is also forming different harmonic bullish moves very well. However, it is very important to take care of stop loss while buying such bullish asset to minimize the risk investment.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
