VLXUSDT Bullish long-term but has to weather some 1H volatility

This idea is an update to last week's 4H analysis on Velas (VLXUSDT):


What's new is that the 1.5 Fibonacci extension level and Resistance 1 (0.2900) haven been hit. That opens the way for the next Resistance level of 0.3350 and the 2.0 Fibonacci extension. Another positive development is that the rebound for the break-out sequence took place on the former Lower Highs trend-line of the January 13 High. That is a strong indication that this rally is based on continuous buying accumulation.

This time I want to bring light on the 1H time-frame as well (right side of the screen), as Velas has to overcome the short-term volatility created by a symmetrical Higher Highs/ Higher Lows pattern. As you see the price pumps and then corrects. Right now the 1H Ichimoku has turned red but the 1H MA50 (blue trend-line) is supporting. If it fails, expect a pull-back towards the Higher Lows trend-line around 0.2300 - 0.2250. On the other hand, the invalidation line is on the previous high at 0.2550. A break means that the trends turns bullish again towards 0.3000 and the 0.3350 in succession.

Overall we consider Velas a great long-term investment with one of the highest potentials in the market.



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