ONE → Major Rip and now Major Dip? This Analysis Clears it up.ONE (Harmony) had a fantastic move to the upside and per my last analysis, we capitalized on it. We have now come into contact with the downward-sloping resistance on the Weekly timeframe. Is it time to short?
How do we trade this? 🤔
Short answer, almost. The downward-sloping resistance is a major data point in this analysis, coupled with the two failed attempts to break it, the strong bull capitulation candle and the RSI falling below the Moving Average, we have a case for a short entry.
Wait for the price to come down to the 30EMA, it's likely to find support and come back up a bit. Then wait for a good sell signal between $0.018 and $0.019, that's your queue to enter. The other major factor is Bitcoin's next move which has a good probability of falling below $40,000.
💡 Trade Ideas 💡
Short Entry: $0.019
🟥 Stop Loss: $0.024
✅ Take Profit: $0.014
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Double Top Reversal at Downward Resistance. Bias to Short.
2. Look for Bounce at 30EMA followed by another Rejection.
3. Bull Capitulation to Downward Resistance, Sell Signal.
4. RSI at 60.00 and Below Moving Average, Supports Downward Movement.
5. Bitcoin may be Reversing, Could pull Down ONE Price.
💰 Trading Tip 💰
Resistance on higher timeframes carries more significance with respect to probability on lower timeframes. Combined with sell signals and three pushes up on a lower timeframe, there's enough probability to justify looking for a reversal trade.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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