Hi friends, hope you are well and welcome to the new update on Pundi X token. Recently token rallied more than 50% and retraced back again. As in my previous article, I told you that the price action has completed the cup and handle pattern and there was a possibility that the price action will breakout the handle and also hit the resistance of the cup. Finally, the priceline of NPXS token moved up and broke out the handle and hit the resistance of the cup that is at 0.0002400 btc.
Cup & Handle pattern before execution:
Cup & Handle pattern after execution:
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The priceline has broken down the EMAs:
Recently the price action also has broken down the exponential moving averages with the time period of 10 and 21 on the daily chart. But if we watch the history of the priceline after the bullish move of March 2020 then it can be clearly observed that whenever the price action breaks down these to EMAs then after a few candlesticks the price action breaks out these exponential moving averages again and starts then you rally to the upside.
Price action hits the support of channel again:
After being rejected from the resistance of the Cup & Handle pattern at 0. 0002400 btc the price action again moved down at the support of the up channel. This channel was started after the mid of March 2020. We have already seen that the price action has recently broken down the exponential moving averages 10 and 21. Now this support of the channel will help the priceline of NPXS token to move up again and break out these 2 EMAs. Now the price action can again reach the resistance of this channel. It can be approximately a 21% move. Therefore in the next few hours are very important as price action has already consolidated at the support, therefore it can start the new rally to the upside very soon.
For the 1st time NPXS hits bearish cloud for the big move:
Now if we switch to the long-term weekly chart and place Ichimoku cloud. Then it can be clearly observed that for the first time in the history of Pundi X the price action of this token is trying to break out the bearish Ichimoku cloud. The lagging span of Ichimoku cloud is already above the candlesticks and we have already received a bull cross between the conversion and the baseline that is very strong bullish signal. The cloud in itself is also getting squeezed and soon it can turn bullish. Once the candlesticks will be entered in this bearish cloud then we can observe a very rapid move up to the resistance of this cloud and once the cloud will be broken out then it will become a very strong support for NPXS token. Using this support the price action can start a very long time bullish rally
From the mid of March up till now, the Pundi X has surged more than 240%. At this time it is moving in the up channel. But we should use the support of this channel as stop-loss because if this support will be broken down then in a new rally to the downside can be started.
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