Fade Long For Early Position in Next CyclePhone is one of those tickers that I’m watching for the next cycle here with crypto. Currently at interesting inflection point the challenges if it doesn’t stop here then there’s a big hole between the current price and down to the two dollar area or so. That would be my concern starting a position here. One thing to consider is a DCA starting here down to $1.80.
Daily Chart Analysis
Momentum Analysis : RUNE/USD has been in a downward momentum since April, with lower highs and lower lows.
Key Indicators :
Fast Momentum: Indicates short-term bearish momentum.
Slow Momentum: Indicates longer-term bearish momentum.
RexDog Average (RDA): Positioned above the current price, acting as resistance.
Support and Resistance :
Support: Around $4.00.
Resistance: Near $5.00-$5.50, aligned with the RDA.
Price Action : The price is consolidating at $4.00, suggesting potential stabilization before the next significant move.
Four-Day Chart Analysis
Momentum Analysis : Continued downward momentum with lower highs and lower lows.
Key Indicators :
Fast Momentum: Downward, indicating short-term bearish momentum.
Slow Momentum: Downward, reinforcing the bearish momentum.
RexDog Average (RDA): Positioned above the current price, providing significant resistance.
Mixed 200 (Red and Green Line): Acts as a bias indicator and a reaction area.
Support and Resistance :
Support: Around $4.00.
Resistance: Around $5.00-$5.50, aligned with the RDA and the mixed 200.
Price Action : Consolidation at $4.00, suggesting potential stabilization.
Combined Analysis and Trading Strategy
Reaction Zones : On both the daily and four-day charts, expect reaction zones around $4.50, $5.00, and $5.50 as the price moves up. These areas are aligned with the RDA and mixed 200, significant resistance levels.
Entry Zone for Long Trade : The mixed 200 can be considered as an entry zone for a long trade. However, this trade is a fade trade against the predominant bearish momentum.
Fade Trade Context : Given that all indications of this chart are biased and momentum is short, this is a counter-momentum trade. Traders should be cautious and look for confirmation signals before entering a long position.
Overall, while the setup suggests a bearish sentiment, traders should be vigilant for possible reversal signals, especially around the mixed 200, if considering a fade trade.
