- June 28, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Kava (KAVAUSD) has been trading within a Bearish Megaphone since the August 30 2021 High. The recent short-term rally in the form of a Channel Up is close to a 1D MA50 (blue trend-line) test. A candle closing above it should be a bullish break-out call towards the 1D MA200 (orange trend-line).
The pattern however so far resembles the sequence of January 24 – February 06. The RSI sequences prior are also identical. That pattern got rejected on the 1D MA50 and after trading sideways below it, it finally targeted the 1D MA200 when it broke. The strategy here should be to buy on the pull-back or if the 1D MA50 breaks (candle closing above) first.