VLXUSDT A weekly perspective. Long-term potential for $1.50.This is my first analysis of Velas (VLXUSDT) on the weekly (1W) time-frame. And the reason I do so, is to bring you a fresh perspective on how strong the long-term upside potential is on this token.
** The 1D MA50/200 and Fibinacci Channel **
First of all, even though the time-frame is 1W, I've plotted the 1D MA50 (yellow trend-line) and the 1D MA200 (red trend-line) in order to identify price shifts. Every time the 1D MA50 crosses above the 1D MA200, it forms the technically bullish Golden Cross pattern. In the previous two Cycles, the Golden Cross was formed when the price had already broken above the Lower Highs trend-line of the Cycle peak. On the current cycle, the price is still trading below the Lower Highs trend-line and with the 1D MA50 supporting, we are closer to a Golden Cross than ever and this time may take place below the Lower Highs for the first time.
As you see, Velas' price action since it first started trading can be charted within a Channel Up. I've used a Fibonacci Channel to illustrate how high it can get on the next Cycle peak. This Cycle has made a Higher bottom relative to the others as it didn't reach as low as the 0.0 Fib level. As a result, there is a Diverging Higher Lows trend-line, which may in turn cause a Diverging Higher High. That aligns perfectly with a modest rise from bottom to peak of +1100% as in the first cycle. That would cause the price to get very close to the 1.5 Fibonacci extension and that is exactly why the Fibonacci Channel is used on this long-term analysis.
** The RSI and LMACD indicators **
The 1W RSI and LMACD indicators, offer an even greater insight in combination with the Fibonacci Channel and the Golden Cross. The RSI is currently above the RSI-based MA (black trend-line), having made a Cross in late March. In past cycles, every time this cross took place, the price candles broke above the 1D MA50 and never closed below it again before the parabolic rally started.
Also, the LMACD is close to a Bullish Cross. The last Bullish Cross took place in late August 2021, and practically signaled the start of the Parabolic Rally and break above the Lower Highs trend-lin.
** Conclusion **
This unique 1W analysis definitely shows that VLXUSDT is close to a Parabolic Rally. Right now the price is a great opportunity on a long-term perspective and if the +1100% projection plays out again, then we can expect for VLX to reach a value around $1.50.
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