Will StarkNet STRK be able to revive from the dead zone?
Hello Skyrexians!
Today we have another “promising” cryptocurrency to review. This is the STRK token. Since the listing price of Binance has dropped significantly and is still falling now. The entire crypto market dump fueled the STRK sell-off. Today we will analyze this asset in detail and try to understand whether this coin will pump or die. To successfully trade cryptocurrency, it is vital to consider all possible scenarios.
Looking at most ideas on this asset, we can conclude that most cryptocurrency trading strategies advised buying this coin when the price was above $1.5. Obviously, these are not profitable cryptocurrency trading strategies. Even the automated cryptocurrency trading of most cryptocurrency trading platforms cannot predict the price of this asset because after a 50% reset it continues to dump, which is unlikely according to the algorithm of most cryptocurrencies.
This is why most automated trading bots and grid bots have encountered losses on this asset. The exception is the ai cryptocurrency trading bot, which takes into account the Elliott wave, a key feature of successful cryptocurrency trading. Today we will look at the price action of STRK using an advanced technique. Let’s go!
STRK dump structure
Let’s use the 1D time frame to analyze this downtrend. Fortunately, it has a clear Elliott wave structure. The amazing oscillator helps us find the most impulsive wave 3, this is the minimum value. After this, the price formed a flat or triangle wave 4. If the crypt has already fallen significantly, it tends to form flat corrections without a large rollback upward. This is because most of the early bulls were locked in their positions and they will be disappointed before the reversal.
Now we see three strong signs of a trend reversal. The fearsome oscillator crossed the zero line after wave 3 bottomed, it has a bullish divergence and momentum is now moving up. In most cases, this is enough to decide whether to enter a trade, but we will dive deeper into other indicators.
Early reversal detection using MFI
Which indicator has a high concept for a potential reversal when everyone is still talking in the direction of the trend? Our answer is MFO! Look at the sequence of squat (red) stripes below.
This means that this is a real war between bulls and bears. A decrease in MFI shows that sales volume cannot effectively move the price. Moreover, we saw two confirmed bullish reversal bars on this price action. It can be assumed that the first bar was the finish of sub-wave 3, too early to enter. The second, in our opinion, is the 5th end of the wave. Moreover, all these actions were below the Alligator, which is a strong confirmation of our thoughts.
Is Wave 5 Really Over?
To understand whether wave 5 has ended, we must see the sub-waves within. Wave 5 is impulsive and must have 5 waves inside it.
Looking at the chart, we see that on the 7-hour time frame there is a divergence between waves 3 and 5. AO crossed the zero line on wave 4. As usual, wave 4 is in a flat and does not allow traders to escape from unprofitable long trades. The current price action does not look that impulsive, but if the price is able to show us a huge green candle, then it can be considered wave 1 of a bullish rally.
Conclusion
Most of you are asking me about potential price targets if my idea of the upcoming bull rally is correct. This asset does not have enough history to establish a long-term target. Logically, I can say that if the price reaches $1.5, then most likely it will also reach the $4-5 zone. The logic is simple: most of the early bulls entered positions above $1.5. Now it seems that they no longer believe in this project. If the market maker allows them to break even, they will likely exit the trades. This is excellent liquidity for a major player. The whales will buy this entire volume and, having almost the entire emission in their hands, can send the STRC very high. In any case, we will see how the price moves and update if anything changes.
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