FLOKI INU Breakout or Breakdown?This chart should tailor to both technicians and fundamentalists.
For those new to the world of crypto and/or charting and my page:
My bias when it comes to price action will always favor fundamentals. Thus, all my TA will be complimentary to the fundamental data of the asset (volume). TA, imo, is/ only should be used as extra confirmations to fundamental data/analysis. I am always happy to answer questions, debate views/ analysis, and learn from fellow technicians who are looking to constructively agree or add alternative views. Please feel free to comment/ ask for further explanations.
-How to translate the chart-
Price Action/Trading range:
0.000035-0.00004 will be our local support and resistance (red box), to which we are attempting to break the current downtrend and reverse into a breakout resulting in ~20% leg up/ test of 0.000045, if postive volume follows this leg up, we could press to 0.000049. Though, I find this unlikely after the recent pump, its also more possible than ever. Due to market psychology, fomo, and recent growth in centralized exchange listings, FLOKI definitely has the ability to make new highs (in respect to kucoins chart here, as DEX pairs have data back to September of 2021, refer to FLOKIWETH pair).
Volume/ Confirmations of Bullish expectations:
-OBV-
*Neutral until confirmed*
On balance volume looking to confirm a local bottom
Our recent moves upward are being supporting with higher highs and higher lows. However, to confirm bullish sentiment and have a healthy breakout above 0.00004, OBV will need to break the local resistance line (red)
Please remember, Negative volume balance shows weakness. It shows that the asset falls on high volume and reacts upwards on low volume. This indicates that investors are worried about not being able to sell when something happens, and also hesitant to buy on rising prices.
-NET VOLUME-
*BULLISH*
Ratio is positive (More buys than sells over the measured timeframe)
-VOLUME OSCILATOR-
*Bearish*
Currently indicating a rise in price, with decreasing volume over the measured timeframe
My Long call derives from shorter timeframes (4hr, 2hr2, 1hr), however, those need to hold and the chart shown above will begin to prove out the trend reversal. If price falls out of the wedge on the daily, new local lows are inevitable.
