Hey Folks hope you are well and welcome to the new update on WazirX token. The WRX token had a big event of coin burn on the 5th of July. And since then the price action is still moving at the resistance of the channel that has been formed on the daily chart.
The market cap is increased:
Even though the price action is moving sideways and not started any big rally as we were expecting before this event. But if we watch the market cap of WazirX then we can understand what is happening behind the scene. Because the market cap of WRX has been increased by 40% from 15 Million Dollars to 21 million dollars and so far it is maintained above 20 million dollars.
The down channel:
Now if we watch on the daily chart then the price action is moving in a down channel. It seems to be like a parallel channel but if we take a closer look on the chart then it is moving a little bit down therefore it is a down channel. When we place the volume profile on the complete price action of this channel. Then we can understand that the trader’s interest is very low at the resistance and also very weak at the support of the channel. The moon phases indicator is also giving signals that the full moon is at the resistance and the dark one it at the support, therefore both indicators are giving an indication that it would be difficult for the priceline to break down or break out the support and resistance of the channel. But if we watch the point of control of the volume profile then it is moving horizontal and the channel is moving down. Therefore if the price action will be moved more within the channel then soon the point of control will be moved out from the resistance of the channel and the price action will follow the point of control of the volume profile and it can also break out the resistance. Once the resistance of the channel will be broken out then we have the next resistance level at $0.20 and in case of breaking down the channel’s support we have the next support at $0.08.
The SMAs can be helpful for the breakout soon:
If we place the simple moving averages with the time period of 25, 50, and 100 on the daily chart. Then the price action has broken out all these simple moving averages and likely to re-test these moving averages as support. Therefore we can expect if this re-test will be successful then price action can easily break out the resistance of the channel very soon.
The Ichimoku cloud and directional movement:
Now if you place the Ichimoku cloud on the daily chart then it can be easily observed that priceline of WRX has broken out the bearish cloud and likely to re-test this cloud as support. And the directional movement has also given strong bullish signals as we can see the positive direction indicator (the blue line) has crossed up the negative directional indicator (the orange line) and ADX (the red line) is up with the value of 34 that is showing the power of bulls.
Even though the price action did not show any bullish spike but the market cap is showing that the buyers and the traders are interested to buy the WazirX token. Therefore we can expect a big move by the WRX very soon.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
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