- October 21, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
For this particular analysis on The Open Network we are using the TONUSDT symbol on the OKX exchange.
The idea is on the 1D time-frame where TON is currently testing the 1D MA50 (blue trend-line) for the second day in a row. This test is carried out while the 1D RSI is on a strong rise, similar to those of July 26 – 31 and June 18 – 21. Those rises staged the Higher Highs of the Bullish Megaphone pattern that TONUSDT has been trading in since the June 19 Low.
Even the MACD has been printing a similar formation as the one that preceded the July 26 Low. A closing above the 1D MA50 can potentially kick-start a similar rebound to a new Higher High, in which case it can be massive. The previous one topped just above the 2.0 Fibonacci extension level. If the pattern continues, the next Fib (3.0) is at 2.900, with such a move representing a potential +100% rise! The Risk/ Reward Ratio is excellent on this break-out trade.