As a seasoned researcher with years of experience in the volatile world of cryptocurrencies, I’ve seen my fair share of bull runs and bear markets. The latest surge in SATS (SATS) has certainly piqued my interest, but as I closely examine the charts, I can’t help but feel a sense of déjà vu.
In simple terms, the recent surge in the price of Ordinals might form a bearish double top, which could indicate the beginning of a significant downward trend for this cryptocurrency.
Since reaching a one-month low of $0.000001540 during the Black Monday incident on August 5, SATS (SATS) has shown a remarkable rebound.
On three separate instances following a steep decline, the value of this digital asset experienced substantial increases in a single day. The largest surge happened on August 12, when SATS jumped by approximately 24.79%, reaching a new monthly high of $0.000003232.
Despite a 2% drop this morning, SATS has defended the support around the $0.0000031 psychological mark. The asset is trading at $0.000003148 at the time of writing, representing an impressive 104% gain from the Aug. 5 floor price.
Nonetheless, the upward momentum seems to be encountering obstacles. A possible double-top pattern emerges on the daily chart, which lends support to a pessimistic forecast. The initial peak was created when Ordinals reached $0.000003418 on July 26. The second peak formed during the recent rise to $0.000003232.
If the downward trend of the asset continues towards the $0.00000154 support level, it will confirm the double top formation. To prevent any potential drops to the neckline, SATS needs to strongly protect the $0.000001988 region.
Right now, the Stochastic RSI (Relative Strength Index) suggests the asset might be overbought. The %K line is at 87.95, and the %D line is at 77.87. Generally, when both lines are above and close to 80, it’s a sign that the asset could experience a price correction soon.
Furthermore, when the Ichimoku Cloud’s conversion line (represented by blue) lies beneath the base line (shown in red), it suggests a bearish condition, potentially indicating a potential for a declining trend.
Even with the recent downturn, the surge has maintained SATS above a certain level, indicating that positive sentiment remains strong. In the midst of this decline, the bulls must keep the price above $0.000002880 to continue the upward trend.
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2024-08-13 12:20