Introduction
Hello everyone! I hope you're doing well. In this article, we'll be analyzing the recent price movements of Syscoin (SYS) and its potential future trends. In previous updates, we discussed how Syscoin broke out of both a long-term falling wedge pattern and a smaller falling wedge pattern on the 7-day timeframe chart. Let's dive into the latest developments and see where Syscoin might be headed next.
Breakout from Falling Wedge and Up Channel
First, let's look at the weekly timeframe. Previously, Syscoin broke out of a significant falling wedge pattern after breaking down from an up-channel. The breakout from the falling wedge led to a massive rally, where the price surged by approximately 380%. However, Syscoin was unable to break through the long-term resistance level at 40 cents, a level that had previously served as both support and resistance. This failure to break resistance led to a pullback, causing the price to become trapped within another down channel.
Recent Price Action: Down Channel Breakout
On the daily timeframe, we can see that since March 10th, 2024, Syscoin has been trading within a down channel. The price action has been characterized by multiple bounces off the channel's support and resistance lines. Recently, Syscoin managed to break out of this down channel, resulting in a significant pump of around 265%. Despite this impressive rally, the price was unable to break the long-term resistance level at 20 cents, leading to a pullback.
Recent Trade Signal: 16% Pump
On August 23rd, 2024, I shared a trade signal for Syscoin, which was based on a harmonic bullish reversal pattern (AB=CD move) on the 4-hour timeframe chart against the US Dollar. This trade played out successfully, producing a 16% pump as the price reversed from the buying zone and rallied beyond the sell targets.
Click here to visit this trade signal
Future Projections: Retesting Support and Potential Upside
Looking ahead, there's a possibility that Syscoin may retest the previous resistance of the down channel as support before making another move to the upside. If this occurs, the price could also test the long-term support at 9.5 cents.
The long-term technical target for the breakout from the down channel is the top of the channel at 40 cents, which is also a significant resistance level. This level has acted as both resistance and support in the past, and it could once again prove challenging to break.
Ultimate Target: Falling Wedge Breakout
The long-term target for the breakout from the previous falling wedge pattern remains between $1.30 and $1.50. This target is still in play, and achieving it would require Syscoin to break through several key resistance levels along the way.
Conclusion
In conclusion, Syscoin has demonstrated strong bullish potential following its breakout from a down channel, but it faces significant resistance levels that need to be overcome for further upside. The next key levels to watch are the support at 9.5 cents and the resistance at 20 cents. If Syscoin can successfully navigate these levels, it could be on track to reach its long-term targets.
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