OPUSDT reaching apex of wedge - Big move soon!
There are a few things to discuss on this OPUSDT chart and they all revolve around the huge wedge we are currently in.
Multiple tests of lower diagonal - We've tested the lower trendline of this wedge about 7 times already. A breakdown of this structure would indicate buyers have lost control and sellers are taking over.
Fewer tests of upper diagonal - The price action between August and mid-October took the price down far enough that the lower diagonal was tested more times than the upper, which has only been tested 3 times so far. This is a sign that buyers do not have strength.
61.8% Internal Retracement rejection - We rejected a key level at the beginning ov November and the fib levels at the 38.2 / 50 continue to be important ever since. Most recently testing the 50% retracement just a few days ago.
Most recent volume is bearish - Most recently, on the spike to ~1.20, the volume was bearish with the highest amount of recent volume being at the top but the price didn't break out. This is a key indication that the buyers are still not in control.
Key moving averages about to cross - The 55/100EMAs are about to cross bearish. Beware for a mean reversion into the 55/100EMAs before sellers take over.
Important: There is no trade right now. When you trade a wedge, you shouldn't try and guess what will happen, but wait for confirmation. If this breaks up, the target is close to $6.00 and it's still entirely possible we will hit that target even if we break down, but it'll just take longer to get there and there may be significant downside before then.
Multiple tests of lower diagonal - We've tested the lower trendline of this wedge about 7 times already. A breakdown of this structure would indicate buyers have lost control and sellers are taking over.
Fewer tests of upper diagonal - The price action between August and mid-October took the price down far enough that the lower diagonal was tested more times than the upper, which has only been tested 3 times so far. This is a sign that buyers do not have strength.
61.8% Internal Retracement rejection - We rejected a key level at the beginning ov November and the fib levels at the 38.2 / 50 continue to be important ever since. Most recently testing the 50% retracement just a few days ago.
Most recent volume is bearish - Most recently, on the spike to ~1.20, the volume was bearish with the highest amount of recent volume being at the top but the price didn't break out. This is a key indication that the buyers are still not in control.
Key moving averages about to cross - The 55/100EMAs are about to cross bearish. Beware for a mean reversion into the 55/100EMAs before sellers take over.
Important: There is no trade right now. When you trade a wedge, you shouldn't try and guess what will happen, but wait for confirmation. If this breaks up, the target is close to $6.00 and it's still entirely possible we will hit that target even if we break down, but it'll just take longer to get there and there may be significant downside before then.
