NKN/USDT pair looking ready to test a textbook neckline
تم تحديثه
Overview: NKN/USDT is coming up on a crucial test of prior resistance, including the neckline of a textbook inverse head and shoulders pattern.
Analysis: The 3-day chart suggests a pretty hefty line of resistance at the 0.03 area for NKN/USDT. This is not only prior resistance, but also a perfect alignment with a massive, inverse head and shoulders pattern. If NKN breaks out of this range, there is very little stopping it from taking off to new highs in a very short amount of time. If we use the technical measures to indicate potential upside from the neckline, we would have a final target of 0.093 (try charting that, it looks ridiculous, but it is technically accurate). If, however, the breakout fails, I would expect a minor, perhaps swift correction to the nearest local support in the 0.027 area before trying to break the line again.
Deeper Dive: As we have seen with other coins of this market-cap class, the gradual influx of buy/sell volume lets you know something is brewing. NKN's volume is slowly increasing, and at some point, due to the line of resistance/neckline it is facing, that volume will necessarily spike. Whether that is to the upside or down, depends largely on factors beyond the scope of the NKN project. This is where it becomes very important to watch bitcoin's price action, and the market's sentiment in general.
Comments: I am admittedly bullish on this pair due to a confluence of timing and technicals playing out. Bitcoin need only move up gradually or trade sideways for a few days for this breakout to materialize. If anything happens too quickly in the BTC charts, all bets are off (as usual).
Final Note: Although I am intrigued by the scope and developmental aspirations of the NKN team and their focus on privacy, I am perhaps even more optimistic about the potential setup we see in the technical analysis. That said, don't abandon your risk management strategy - at any cost.
Good luck.
"Every day is a little life, every waking and rising, a little birth, every fresh morning, a little youth, and every going to rest and sleep, a little death."
Analysis: The 3-day chart suggests a pretty hefty line of resistance at the 0.03 area for NKN/USDT. This is not only prior resistance, but also a perfect alignment with a massive, inverse head and shoulders pattern. If NKN breaks out of this range, there is very little stopping it from taking off to new highs in a very short amount of time. If we use the technical measures to indicate potential upside from the neckline, we would have a final target of 0.093 (try charting that, it looks ridiculous, but it is technically accurate). If, however, the breakout fails, I would expect a minor, perhaps swift correction to the nearest local support in the 0.027 area before trying to break the line again.
Deeper Dive: As we have seen with other coins of this market-cap class, the gradual influx of buy/sell volume lets you know something is brewing. NKN's volume is slowly increasing, and at some point, due to the line of resistance/neckline it is facing, that volume will necessarily spike. Whether that is to the upside or down, depends largely on factors beyond the scope of the NKN project. This is where it becomes very important to watch bitcoin's price action, and the market's sentiment in general.
Comments: I am admittedly bullish on this pair due to a confluence of timing and technicals playing out. Bitcoin need only move up gradually or trade sideways for a few days for this breakout to materialize. If anything happens too quickly in the BTC charts, all bets are off (as usual).
Final Note: Although I am intrigued by the scope and developmental aspirations of the NKN team and their focus on privacy, I am perhaps even more optimistic about the potential setup we see in the technical analysis. That said, don't abandon your risk management strategy - at any cost.
Good luck.
"Every day is a little life, every waking and rising, a little birth, every fresh morning, a little youth, and every going to rest and sleep, a little death."
تم فتح الصفقة
10hrs left on the 3day candle since posting. On smaller time frames, it is possible to see a break of the neckline/prior resistance, and a re-test is underway. If BTC has a stable day of sideways action or mild recovery, I expect the re-test to lead to a continuation of the pattern. I will publish price targets in an updated chart, separately.
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