Hi friends, hope you are well and Welcome to the new update on the REEF token.
A down channel and the volume:
On the 2-day chart, the price action of Reef with the US dollar pair has formed the down channel and moving very well between the resistance and support of the down channel.
At this time, the price action is at the support after getting rejected by the resistance.
Therefore, we can expect that the price action can have another bounce to the upside to this resistance of the channel. If the price action will hit the resistance then this move can be approximately up to $0.035 cents. After placing the volume profile on the complete price action moving within this channel it can be seen that there is less interest of the traders at the support.
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Simple moving averages and expected alligator mouth:
We have 100, 50, and 25 simple moving averages on the daily timeframe chart.
For any big move, the price action needs to first break out the 25 then 50, and then 100 simple moving averages. Then we can expect that the 25 simple moving averages will be moved above all, and the biggest time period moving average, 100 SMA will be moved below all, which will be a perfect open alligator mouth formation by the simple moving averages. Which is a very powerful bullish powerful signal.
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Broke out the falling wedge:
On the 4hr-chart, the price action formed a falling wedge pattern.
While moving up and down between the falling wedge, now finally the price action has broken out the resistance of the falling wedge.
We have a retest of this previous resistance as a support as well.
It is also possible that the price action will once again move down in an obvious manner to retest the support. After that, there can be a powerful rally to the upside. And the target of this rally can be the tail of the falling wedge approximately at $0.027.
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Big bullish Shark move:
REEFUSDT: REEF has formed big Shark for upto 330% bullish rally
Now if we switch to the weekly chart, the price action of REEF has formed a bullish Shark pattern and entered the buying zone.
Buying and sell targets for Shark move:
Buy between: $0.0219 to $0.0118
Sell between: $0.0309 to $0.0512
Stop loss:
The maximum extent of the potential reversal zone at 1.13 Fib level can be used as stop-loss which is $0.0118.
Possible profit and loss ratio:
As per the above targets, this trade has a profit possibility of 330%, and a high loss possibility of up to 46%.
Conclusion:
The REEF token has been caught in a wide channel and reached the support. The price action has already broken out the wedge, now once the Priceline of REEF will start moving up from the buying zone of the big bullish Shark pattern then it can easily break out the channel and the price level resistance of $0.055 as well.
Note: Above idea is for educational purposes only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
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