VELAS is a true sleeping monster ATM (TA + TRADE PLAN)Trend Analysis
Current Price:
The price is hovering around 0.0117 USDT, which shows a small upward movement (+1.31%) in the current time frame (4-hour chart).
Trendline: The chart shows a downward channel (red arrow) where the price has been moving lower. However, the price is now approaching a key support level and showing signs of potential reversal.
Resistance Levels:
The resistance level is marked by a horizontal red line, indicating significant selling pressure at around 0.0160 USDT. The price must break this resistance to signal a potential upward trend.
Support Levels:
A key support zone is located between 0.0100 USDT and 0.0132 USDT (marked with green), indicating that the price has been consolidating and could bounce back from this level.
Indicators
VMC Cipher B-Divergences: The indicator is showing divergences, suggesting potential reversal points, especially as the market is showing bullish divergence at lower price points.
RSI (Relative Strength Index): The RSI is at 38.94, which indicates that the asset is in neutral or slightly oversold territory, suggesting that it could be poised for a bounce upwards if buying pressure increases.
Art Money Flow Index: This indicator is currently low (around 23.60), suggesting that the money flow is weak. However, it is not in extreme oversold territory, which gives room for potential growth if momentum picks up.
Stochastic Oscillator: The stochastic indicator is in oversold territory (around 35.39), signaling that a bullish reversal is possible if the trend picks up.
Volume Analysis
Volume: Current volume is 3.39K, which is relatively low but has been increasing recently. Higher volume during upward price movement would confirm the continuation of a bullish trend.
Key Patterns & Signals
Bullish Reversal Setup: The chart shows a potential bullish setup with increasing buying pressure near support. The presence of bullish divergences in the VMC Cipher and the RSI is an early indicator that the market could reverse to the upside.
Breakout: The chart suggests that once the price breaks through the resistance level at 0.0160 USDT, it could accelerate towards the 0.0200 USDT level.
Professional Trading Plan
1. Entry Points:
Primary Entry: Wait for a clear breakout above the resistance zone (0.0160 USDT). A confirmation of this breakout on higher volume would present a strong entry signal.
Secondary Entry: Enter near the support level around 0.0100–0.0130 USDT, particularly if there is a reversal candle pattern or other confirmation of bullish momentum.
2. Target Price Levels:
Short-Term Target: 0.0180–0.0200 USDT as the next resistance zone after a successful breakout from the current resistance.
Long-Term Target: 0.0280 USDT, assuming further strong upward momentum.
3. Stop-Loss Levels:
Primary Stop-Loss: Set a stop-loss at 0.0100 USDT (below the support zone) to limit downside risk in case of a breakdown.
Tight Stop-Loss: For more conservative traders, place the stop-loss just below the immediate support zone near 0.0120 USDT.
4. Risk Management:
Allocate a small portion of the portfolio per trade, and use appropriate position sizing based on risk tolerance. For example, 1–3% of the total portfolio per trade.
Monitor volume spikes and price action for any signs of reversal or trend exhaustion.
5. Trade Monitoring:
Regularly check the key technical indicators (RSI, Stochastic, Art Money Flow) for shifts in momentum.
Be aware of any external news or market events that could impact Velas’ price action.
The market for Velas (VLX) shows potential for a reversal upward, especially as it tests key support levels and the RSI enters neutral territory. The breakout above resistance would be the key confirmation for further bullish movement, and traders should be prepared for a possible rally towards 0.0200 USDT. Keep an eye on the trading volume and price action for confirmation.
