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- The IMX token after a great bull rally has started consolidating at current price levels.
- A bullish pennant pattern formation on the daily chart may be considered as the base for a bull rally ahead.
- A Golden Crossover may be seen taking place after the breakout of the bullish pennant pattern.
The technical analysts may have observed that the token previously displayed a significant bull move from its major support level, that is, from $0.400. At the current price levels, investors may have also observed the formation of a bullish pennant pattern. After this pattern breakout, a significant increase in prices of the token may be seen.
Monoscopic View
On the daily chart, the bullish pennant pattern indicates that there might be chances of a bull move ahead. The upper trendline (blue line) is acting as the token’s resistance. Therefore, if the price of token breaks this resistance, a bullish pennant pattern breakout would take place and investors may see the prices going higher. Moreover, there is a possibility that a Golden Crossover may occur in the future, which might raise the prices even higher.
We can observe a bearish crossover on the MACD indicator. This bearish crossover implies that bears have taken control over the bulls. However, this crossover should not be interpreted as a sell signal since if there is a slight increase in price, we may see a bullish crossover, which may then be interpreted as a signal that prices may rise.
The RSI curve, on the other hand, is currently trading at 57.86 which is above its 50-point threshold. However, this cannot be considered as a buy signal, because it is clearly visible that the RSI curve is falling and therefore there are chances that the price may fall more before giving a breakout of the bullish pennant pattern..
Overall, it can be said that the MACD and RSI indicators are both neutral at this particular point of time.
Microscopic View
A Golden Crossover occurred at the major support level on the short-term chart which led to a sharp spike in the token’s price. Apart from this, investors can see that the token is currently consolidating at the current price levels. Therefore, a breakout of this consolidation zone may result in the increase in prices of the tooken once again.
Conclusion
Investors may have concluded from the daily and short-term chart that the token’s prices may consolidate at current levels for a short period of time before making a bull move. Moreover, there are chances that the Golden Crossover may also occur once the token’s price increases.
Technical Levels
Resistance levels – $1.077 and $1.198
Support levels – $0.762 and $0.400
Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
