From the recent low on August 14. when the evaluation of the cryptocurrency market cap was around $193B till today, the price of Power Ledger has increased by 35% coming from $0.143 to $0.1937.
In the recovery process, the downtrend resistance line was broken but the price still hasn’t broken the resistance found between $0.2 and $0.23.
Zooming out and looking at the daily chart we can see the significance behind the support-resistance range in which the price is currently.
In fact, the price retested the support line on August 14. which propelled the price in an upward trajectory recovering by almost 36%. The price however still hasn’t interacted with the resistance level at $0.23 as is was rejected sooner at the $0.21 level area.
The price is on the same levels as in November last year from were the all-time high to $2 was made which is why this range in which the price is currently is really important. A direction of a breakout from the range will determine whether we are going to see the start of another uptrend or a trend continuation and the price further heading back to where it was since the token was released into the market.
Zooming into the 4-hour chart we can see that from 6 of February the price action has been bouncing inside a corrective triangle. Currently, the price was rejected by the lower median line of the inside pitchfork which serves as resistance.
I have labeled this correction as a WXYXZ sideways correction initially, and as you can see after the Z wave ended on the triangles resistance line the price went lower as expected but I was expecting a breakout from the triangle after this correction which didn’t happen. This fact has caused me to label this correction differently, as more movement inside the triangle is expected before a breakout.
Below chart is showing my alternative count – two consecutive WXY corrections with the first in the opposite direction. The current correction still has more room for the Y wave to develop which is why I think a similar pattern will be formed at the prior correction X wave which I have labeled with the rectangle and projected with ghost bars to the triangle’s support intersection with the support horizontal level at $0.139.
Zooming into the hourly chart however we can see an inverse head and shoulders pattern whos target is calculated to be at the triangles resistance line intersecting the range resistance at $0.23.
As you can see it is still unclear whether a breakout from the upside or downside from the triangle is to be expected which is why I have looked back at the 4-hour chart and calculated my Fibo ratios of the current waves. Wave X is on the 0.618 Fibonacci retracement level which means that wave Y should be significantly lower than projected. I have done this with the Fibonacci extension tool and came up with the target of $0.0475 which is the beginning price of POWR.
As you can see the current upside movement is only a recovery wave B which can go up to $0.3 even before the C wave will push the price to its beginning.
The post Power Ledger (POWR) Price Technical Analysis: Up by 35% from 14th August Low appeared first on Blockonomi.