Is Meta The Most Undervalued Stock In The Magnificent 7?In a recent post on key investment trends for the next decade, we highlighted the addictiveness and pervasiveness of social media as a critical long-term shift. Today, we're buying Meta Platforms NASDAQ:META which we believe represents an exceptional investment opportunity.
The Financials
META's recent financial performance has been stellar. The company has maintained 20%+ year-over-year revenue growth for most of the last two years – impressive for a business generating nearly $50 billion quarterly. Even more compelling is bottom-line growth, with net income increasing approximately 50% year-over-year.
This growth is underpinned by META's robust margin profile, which has strengthened considerably since 2022. We attribute this performance to the company's powerful network effects across Facebook, Instagram, WhatsApp, and Messenger – platforms that effectively capture user attention and provide advertisers with compelling ROI.
The Valuation
What makes META particularly attractive right NOW is the valuation. We consider it the most competitively priced among the Magnificent 7 stocks. With the exception of Google, META offers the most favorable metrics on P/E, EV/EBITDA, and P/S ratios. When factoring in growth expectations, META's PEG ratio actually comes in below Google's.
Historically, META is trading at or below its long-term average multiples – with its P/E ratio currently in the lower standard deviation band.
Overall, we believe META's combination of robust growth, significant margins, and attractive multiple make it the most undervalued Magnificent 7 stock. In a choppy market, we rate the stock a "Strong Buy".
Community ideas
Bitcoin Cycle Update – Are We Nearing the Peak?Check out this BTCUSDT chart – we’re at GETTEX:92K today, and seems like things are heating up!
▸We’ve seen a Cycle Bottom in late 2022 - early 2023, followed by strong Bull runs in 2023 and 2024.
▸Those Consolidation phases (sideways channels) gave us the perfect setup for massive pumps!
▸Right now, we’re in a Pause Triangle after a big rally – but the Cycle Top could be just around the corner in mid-2025.
▸After that? A potential Bear phase – time to plan your moves!
💡 What’s your strategy? Are you riding this wave to the top, or preparing for the next dip? Let’s discuss 📨
VIX, the paroxysm of fear is behind us The international equity market suffered a bearish shock between the beginning of February and the beginning of April, against the backdrop of the trade war. The trade war known as “reciprocal tariffs” initiated by the Trump Administration caused the MSCI World stock index to fall by over 20%.
Now, since the States have entered into a sequence of trade diplomacy, the equity market has rebounded and volatility has dropped one floor.
Can we say that the paroxysm of fear is behind us, based on the prism of technical analysis of the financial markets?
To answer this question, we'd like to take a look at two interesting charts.
1) Firstly, the implied volatility chart of the stocks that make up the SP 500 index, the VIX. The nickname of this index is “the fear index”. Its calculation is based on the price of call and put options on the stocks making up the SP500 index. Remember that the S&P 500 is considered the benchmark index of Western finance
2) The second chart of interest is a quantitative analysis of financial markets. Quantitative analysis of financial markets is one of the disciplines of technical analysis of financial markets, and here it concerns the percentage of SP 500 stocks above the 50-day moving average.
It is precisely the application of technical analysis to these two charts that allows us to argue in favour of a selling paroxysm reached during the first fortnight of April.
For the VIX, the fear index has been rejecting downwards since the 60 level, with a chartist “black cloud cover” structure (Japanese candlestick terminology) and a bearish resolution of the RSI technical indicator from its weekly overbought zone. This signal historically signified that the paroxysm of fear was over.
For the percentage of S&P 500 stocks above the 50-day moving average, the quantitative bullish signal is very convincing. Historically, every time this percentage has fallen below the 20% threshold in an abrupt fashion, only to rise back up again, it has signalled the final phase of the bear market, and that's what's happening again this April 2025, as you can see on the chart below.
CONCLUSION: Through the prism of technical analysis of the financial markets, a number of clues point to a paroxysm of fear reached in the first half of April. Of course, only the fundamentals and the outcome of trade diplomacy can confirm that the low point is well and truly behind us.
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GOLD may enter accumulation when the market lacks impact Spot OANDA:XAUUSD prices were broadly steady in Asian trade on Friday (April 25) after a sharp rise in the previous trading day. The current price of gold is around $3,341/ounce, down from the $3,371 price target that readers noted in yesterday's edition. Spot gold prices jumped on Thursday, snapping a nearly 3% decline the previous day, helped by a weaker US dollar and bargain-hunting as investors kept a close eye on the latest news on tariff negotiations.
Market Highlights
Gold prices rebounded on Thursday after their biggest drop this year as bargain hunters entered the market, Bloomberg reported.
China's official broadcaster CCTV reported Thursday that the Wall Street Journal reported that Trump is considering a plan to impose tiered tariffs on China, and White House press secretary Levitt said Trump's stance on tariffs on China "has not softened."
"This is all fake news. As far as I know, China and the United States have never consulted or negotiated on tariffs, let alone reached an agreement. This tariff war was initiated by the United States, and China's attitude is consistent and clear: if you want to fight, we will fight to the end; if you want to negotiate, the door is open. Dialogue and negotiation must be equal, respectful and mutually beneficial," said Chinese Foreign Ministry spokesman Guo Jiakun.
Cleveland Fed President Hammack made it clear in an interview on Thursday that the Fed has essentially ruled out a rate cut in May. But she also delivered a key message, saying that if there is clear evidence of the economy’s direction, there will be room for policy action in June.
When asked if a rate cut was possible in June, Hammack said: “If we get clear and compelling data in June, then I think the committee will act, assuming we have a clear understanding of the right path for policy at that point.” Markets reacted quickly after Hammack’s remarks, with interest rate swaps indicating the likelihood of a rate cut by the Federal Reserve in June rising to around 65%.
Technical Outlook Analysis OANDA:XAUUSD
After achieving the target increase twice, which readers should pay attention to in the previous day's publication at 3,371 USD, the price point of the Fibonacci retracement of 0.236%, the recovery momentum of gold is being controlled and limited.
In the short term, gold is likely to enter a sideways accumulation phase, waiting for more fundamental breakthroughs. The expected accumulation area is around 3,371 - 3,292 USD, which are the positions of the Fibonacci retracement of 0.236% and 0.382%.
However, with the current position, the main outlook is still bullish in the long term with the trend from the price channel as the main trend and support from the EMA21 as the main support.
During the day, the expectation of short-term accumulation in the main uptrend will be noted by the following levels.
Support: 3,300 – 3,292 USD
Resistance: 3,371 USD
SELL XAUUSD PRICE 3411 - 3409⚡️
↠↠ Stop Loss 3415
→Take Profit 1 3403
↨
→Take Profit 2 3397
BUY XAUUSD PRICE 3204 - 3206⚡️
↠↠ Stop Loss 3200
→Take Profit 1 3212
↨
→Take Profit 2 3218
I am Slightly bullish BUT waiting for more dataFollowing the ideas from earlier in the week, I’m currently waiting on price action to give me more clarity. The market has been pushing higher for the past two days, and while there’s potential for a retracement, it could also be setting up for a continuation to the upside.
I’ll wait until the market opens before making any decisions, but if I had to choose right now, I’d lean slightly bullish.
Oil Short: Ending Diagonal and Rising WedgeI propose that Oil is a good short candidate because of what I am seeing:
1. Rising Wedge
2. Ending Diagonal within the Rising Wedge
I propose 3 entry points for shorting but mention that if you are shorting at the top of the trendline, to cater for false breakout, meaning more allowance in your stop.
Good luck!
Market Analysis: Gold Extends Record RunMarket Analysis: Gold Extends Record Run
Gold price started a fresh surge above the $3,250 resistance level.
Important Takeaways for Gold Price Analysis Today
- Gold price started a fresh surge and traded to a new record high at $3,384 against the US Dollar.
- A key bullish trend line is forming with support at $3,322 on the hourly chart of gold at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price formed a base near the $3,200 zone. The price started a steady increase above the $3,250 and $3,280 resistance levels.
There was a decent move above the 50-hour simple moving average and $3,350. The bulls pushed the price above the $3,380 resistance zone. A new record high was formed near $3,384 and the price is now consolidating gains.
On the downside, immediate support is near the $3,362 level and the 23.6% Fib retracement level of the upward move from the $3,283 swing low to the $3,384 high.
The next major support sits at $3,322. There is also a key bullish trend line forming with support at $3,322. It is near the 61.8% Fib retracement level of the upward move from the $3,283 swing low to the $3,384 high.
A downside break below the trend line support might send the price toward the $3,282 support. Any more losses might send the price toward the $3,242 support zone.
Immediate resistance is near the $3,384 level. The next major resistance is near the $3,388 level. An upside break above the $3,388 resistance could send Gold price toward $3,500. Any more gains may perhaps set the pace for an increase toward the $3,520 level.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Big Tech Lines Up for Earnings Season: What Traders Should KnowPeak earnings season is right around the corner — the next two weeks are for the geeks with tech giants slated to report their quarterly financials all the while traders and investors weigh concerns over tariffs, trade wars, and export controls.
On tap to offload first-quarter earnings updates this week are Tesla NASDAQ:TSLA (Tuesday) and Google parent Alphabet NASDAQ:GOOGL (Thursday).
We’ll get more of the tech elite next week — Meta NASDAQ:META and Microsoft NASDAQ:MSFT deliver next Wednesday and Amazon NASDAQ:AMZN and Apple NASDAQ:AAPL report Thursday. Nvidia NASDAQ:NVDA reports late in May.
Let’s talk about that.
Welcome to earnings season, aka that rush hour of the quarter when traders hit refresh on the earnings calendar , their watchlists, and cortisol levels.
Once again, it's Big Tech in the spotlight — specifically the Magnificent Seven club, a pack of tech heavy hitters who spent the past year building the future of artificial intelligence only to be the first out the door this year when investors dumped risk in the face of looming global uncertainty.
Now, with Tesla and Alphabet kicking off what could be a market-moving series of updates, the real question isn’t just who beat the numbers — but who can still tell a good story in the face of tariffs, competition, and AI-fueled capex that’s starting to look like Monopoly money.
👜 The Setup: Seven Stocks, Seven Bags to Hold
The Magnificent Seven — Tesla, Apple, Amazon, Microsoft, Meta, Alphabet, and Nvidia — aren’t just the tech elite. They’ve been the main engine of the market for the last few years. But in 2025, the wheels have come off.
These technology mainstays, towering over the growth sector, have shed hundreds of billions and are now nursing double-digit percentage losses. Each. One. Of. Them. The growth space, valued more on prospects of bright performance rather than current showing, has been hit hard this year. How hard? That hard:
Tesla NASDAQ:TSLA is down 36%
Nvidia NASDAQ:NVDA is down 27%
Amazon NASDAQ:AMZN is down 21%
Alphabet NASDAQ:GOOGL is down 20%
Apple NASDAQ:AAPL is down 19%
Meta NASDAQ:META is down 16%
Microsoft NASDAQ:MSFT is down 12%
On the outside, we all know what’s dragging stocks — it’s the widespread tariff jitters fanning recession fears and triggering waves of capital outflows. But on the inside, these tech giants are deep into a spending spree, and paring back that guidance might be too late.
AI spending is now at fever pitch, having gone from “impressive” to “uh… should we be concerned?” And that’s what investors will be watching when these masters of technology report quarterly numbers.
Besides the usual revenue figures, earnings per share and (likely timid) guidance, capital expenditures will draw a ton of attention. Capital expenditures, or capex, is the amount of money a company allocates for investments in new stuff like hardware and software and that may include beefing up existing infrastructure.
Injecting AI into systems and operations is top focus right now and Big Tech has decided to be generous and pony up some big money for it. Here’s what this year’s capex looks like, as per prior guidance:
Microsoft has allocated $80 billion
Alphabet has set aside $75 billion
Amazon? $100 billion ready to roll
Zuck’s Meta is in with up to $65 billion
The rest of the Mag 7 haven’t put out official capex projections but no one is sleeping on the opportunity.
Let’s go around the room and see what each of these is dealing with right now.
🚗 Tesla: A Look Under the Hood
Tesla reports first, and traders are bracing for either redemption — or another reason to panic sell.
On the surface, it’s not pretty: EV demand is sagging, especially in China and Europe. Musk’s political disruption and proximity to Trump aren’t helping the optics. And with shares already down 36% this year, the company enters this earnings call with bruises and baggage.
Revenue is expected to come in at $21.2 billion, down 1%, while earnings are projected to drop 8% to $0.42. Tesla delivered 336,681 cars in Q4 , a 14% drop from the same time a year ago.
🌎 Alphabet: Quiet Strength, But Still on Watch
Alphabet is expected to deliver solid results — $89.2 billion in revenue, up 11%, and $2.01 in earnings per share, up 6.3% from last year. Among the Mag 7, it’s one of the best-positioned players to weather trade volatility, thanks to its size, diverse revenue streams, and sheer dominance in advertising and cloud computing.
Its Gemini AI model is heating up the race against ChatGPT and Copilot, and its cloud division is quietly chipping away at AWS and Azure’s lead.
That said, traders will still be watching for any signs of slowdown in digital ad spending—a canary in the coal mine if the economy starts to sputter under tariffs and tightening global conditions.
💻 Amazon and Apple: The Slow Burners
Amazon, with its big-ticket spending on AI, is playing the long game — mostly through AWS, the company’s main driver of profitability. It's aggressive, even by Big Tech standards. The problem? AWS margins are under pressure, and retail is facing the squeeze from cautious consumers.
Amazon needs to prove it can turn AI into revenue, not just headlines. Amazon’s sales and earnings per share are projected to grow 8.16% and 38.7% respectively.
Apple, meanwhile, is in the risky position of relying a bit too much on China for its products — it ships about 90% of its iPhone from Asia’s biggest economy.
And while that may be irrelevant for first-quarter results, it may weigh on the company’s outlook, considering Trump’s flip-flopping on Chinese tariffs (is tech in or is tech out?) .
The iPhone maker is expected to report $93.9 billion in revenue and $1.61 in earnings per share.
🔍 Meta and Microsoft: AI Darlings With Something to Prove
Meta reports next Wednesday, and the pressure’s on. Zuck has gone full steam into AI, pushing for everything from AI chatbots in WhatsApp to personalized content generation across Facebook and Instagram.
But here’s the kicker: Meta still makes its money from ads. And if ad budgets start shrinking in response to tariffs or a slower economy, AI investments may not save the day — at least not right away.
Meta is expected to pull in $41.3 billion in revenue and $5.24 in earnings per share.
Microsoft, on the other hand, has positioned itself as the white-collar AI whisperer. Copilot is everywhere — Office, Teams, Edge, Windows — and its $80 billion in AI infrastructure spending is squarely aimed at enterprise dominance.
It still holds a 49% stake in OpenAI, and Azure is growing, albeit slower than expected. If Microsoft can show AI adoption translating into real revenue, traders may get the breakout they’ve been waiting for.
Microsoft is expected to pick up revenue of $68.5 billion and $3.23 in earnings per share.
🤖 Nvidia: The Final Boss
Nvidia won’t report until late May, but it’s already looming over the entire earnings season. Every other tech company is spending billions on Nvidia’s chips — so when the chipmaker finally updates investors, it could swing sentiment across the entire sector.
The market wants to see that demand is real and growing, especially from hyperscalers like Microsoft, Amazon, and Google. If Nvidia disappoints, the fallout might be like watching a domino go down.
Nvidia is expected to bring home $43.1 billion in revenue and $0.90 in earnings per share.
⚙️ Final Thoughts: Big Bets, Big Risks
This isn’t just another earnings season — it’s a stress test for the Magnificent Seven amid times of big market shifts. The group that once carried the market now faces a reality check: AI is expensive, global trade is messy, and Wall Street is no longer giving out free passes for “vision.”
But where there’s risk, there’s also opportunity. Traders who can sift through the noise, spot the change in tone, and ride the next narrative — whether it’s autonomous Teslas, AI-powered spreadsheets, or ad-supported Metaverse avatars — will have the edge.
What’s your take? Which Big Tech name are you watching most closely — and are you betting on a rebound or bracing for more pain? Let’s hear it from you.
Netflix Pops as Earnings Top Estimates. Are Tariffs a Threat?Netflix NASDAQ:NFLX dropped its first-quarter earnings Thursday after market close and the headlines practically wrote themselves: a record net income, an earnings beat, and a 3% implied jump for the stock at the opening bell. All in a market where the Nasdaq is crying in the corner.
But as always in markets, the big question isn’t “What happened?”—it’s “What could mess this up?”
Ready, set, action: steep tariffs, Donald Trump, and the looming threat of a recession-fueled advertising freeze.
Let’s break down the earnings binge before we channel surf over to the risk segment. Spoiler: Netflix is on a roll—but geopolitical static might still mess with the signal.
🎬 Netflix Hits Record Numbers
The earnings season is picking up the pace. Netflix’s Q1 revenue hit $10.5 billion, up 13% from last year, with net income jumping to a record $2.9 billion. That’s a cool $600 million more than the same quarter last year—and a massive flex with earnings per share at $6.61. Wall Street was only expecting $5.71 a pop.
More importantly, the company raised its full-year revenue forecast to the range of $43.5 billion and $44.5 billion.
💿 How Many New Subs?
In case you're hunting for sub numbers moving forward—don’t bother. Netflix said last quarter they’re done reporting them quarterly. They’d rather focus on what “really matters”: revenue, operating margin, and ad growth.
In Q4 2024, the final quarter with a subscriber growth update, the company pulled off its biggest user-count gain ever: 19 million new accounts , bringing the global total to over 300 million. Not a bad way to drop the mic and ghost the group chat.
🍿 The Ads Are Working. So Are the Price Hikes.
In a move that would usually send churn metrics on a downhill slope, Netflix in January bumped its top-tier plan to $24.99/month in the US. Either that speaks volumes about content quality, or we’ve all collectively accepted that we’ll pay any price to avoid commercials.
That said, ads are quietly becoming Netflix’s next big profit lever. After a rocky launch in late 2022, the ad-supported tier is now gaining serious traction. According to estimates, 43% of new US sign-ups in February 2025 opted for the ad-tier plan, up from 40% in January. Netflix expects to nearly double ad revenue this year.
📺 Is Netflix Recession-Proof?
With interest rates high relative to four years ago, consumer wallets stretched, and geopolitical tension ratcheting up, Netflix Co-CEO Greg Peters had to address the elephant in the earnings room: what happens if people stop spending?
Streaming should survive the storm. As he put it, “Entertainment has historically been pretty resilient in tougher economic times.”
Executives also noted that during downturns, people tend to seek value. Netflix, with its endless scroll, becomes the budget-friendly indulgence of choice. It’s hard to argue with that when you’re five episodes deep into a true-crime docuseries at 3 a.m.
👀 But Then There’s That Nagging Tariff Thing...
While Netflix has so far been insulated from the direct hit of Trump’s revived trade war—most of its costs are content, not commodities—it’s not immune to broader market impact. Tariffs could rattle advertisers, especially if they trigger inflation spikes, slowdowns, or investor anxiety.
Ad budgets are notoriously skittish in volatile times, and if there’s one thing advertisers hate more than bad CPMs, it’s uncertainty. Already, there's chatter that major brands are planning to trim digital spending heading into the second half of the year.
Translation: if tariffs lead to an economic wobble, Netflix’s ad revenue (and by extension, its bullish earnings story) could face a tougher climb.
📢 Leadership Shuffle: No Drama, Just Strategy
In other corporate news, Reed Hastings, the co-founder who brought us DVD mailers, quietly transitioned from executive chair to non-executive chair. It’s more ceremonial than sensational, but it marks a passing of the torch to the current co-CEOs, who clearly have things under control—if this earnings report is any indication.
❤️ Wall Street Loves It—for Now
Netflix NASDAQ:NFLX shares are up 10% year to date, which looks especially shiny next to the Nasdaq’s NASDAQ:IXIC 16% drop. While tech has wobbled under tariff pressure and chip-stock drama ,
Netflix is moving in the opposite direction—proof that profitability, pricing power, and content diversity are still pulling in fresh capital inflows.
But don’t get too comfortable. If tariff fears escalate or ad momentum stalls, Netflix may need to prove all over again that it’s more than just a pandemic darling turned pricing juggernaut.
🎥 Final Frame: Chill Now, but Keep One Eye on Macro
Netflix’s Q1 numbers were promising — but that was just before Trump’s sweeping tariffs rattled global markets.
Added levies, recession risk, and shifting ad budgets could all become plot twists in Netflix’s otherwise upbeat storyline. For now, though, it’s lights, camera, rally.
Your turn: Are you still bullish on Netflix, or are Trump’s tariffs and economic drama changing your channel? Let us know what’s on your watchlist.
Gold - 7000 USD by 2027 (must see, sell here!)Gold is extremely bullish, but nothing lasts forever. To trade gold profitably, you need to always trade with a trend. Clearly the trend is bullish, so we want to open only long positions and avoid short positions to increase the probability of success, and it doesn't matter if you are an intraday or swing trader. When can this huge uptrend end?
The price of gold is inside this huge ascending parallel channel on the monthly chart. This channel has a total of 5 touches, and we are waiting for the 6th touch to take action. I made a calculation, and gold will hit the top of the channel at around 7000 USD in around 2027. This channel is on the LOG scale, so to draw it, you need to switch from linear to LOG. This ascending channel started in 1993 and currently has 32 years!
From the Elliott Wave perspective, we are in wave 3, so expect a wave 4 pullback, probably this or next year. This upcoming pullback will drop the price by 20% to 30% based on historical data. But right now I am very bullish and expect much higher prices!
Please let me know in the comment section what your ultimate profit target for gold is. Are you also bullish? Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
S&P 500 - Key Levels and April 7-11 Weekly Candle StructureApril 7-11 will easily be remembered in 2025 as one of the craziest weeks in modern history.
Intraday swings were face ripping all from a Monday "fake news" becoming Wednesday "real news" with the US pausing tariffs for 90 days
5500 major resistance on S&P
4800 major support on S&P
I believe the market will struggle to provide any clear direction in the coming weeks without some shift in narrative (for better or worse). I'm sure most traders are hoping for an optimistic tone but be prepared to be disappointed as the world's alliances and economies are being strained with massive uncertainty and angst.
There are trading opportunities in the short-term, but I'm not taking any major risks. If I can survive, the upside will be easier and a pleasant surprise.
I expect the weekly candles to dance inside the April 7-11 low and high levels and hopefully it provides some ventilation to a VIX > 30
XAUUSD is in buy zone!After a short break on daily timeframe XAUUSD managed to breakout in the major direction of the trend with strong momentum with multiple liquidity grab from the support level. 5min shows a break of structure and drop to 3254.00 followed by strong rejection to the upside showing a high probability of trend continuation to the upside.
Is the price reaching to 3300?
GOLD Trending Higher - Can buyers push toward 3,300$?OANDA:XAUUSD is trading within a well-defined ascending channel, with price action consistently respecting both the upper and lower boundaries. The recent bullish momentum indicates that buyers are in control, suggesting a potential continuation.
The price has recently broken above a key resistance zone and may come back for a retest. If this level holds as support, it would reinforce the bullish structure and increase the likelihood of a move toward the 3,300 target , which aligns with the channel’s upper boundary.
As long as the price remains above this support zone, the bullish outlook stays intact. However, a failure to hold above this level could invalidate the bullish scenario and increase the likelihood of a pullback toward the channel’s lower boundary.
Remember, always confirm your setups and use proper risk management.
How low Can the Dollar Go? And What It Could Mean for EUR/USDThe US dollar index has handed back all of its Q4 gains with traders betting that Trump's trade war will do more damage than good to the US economy. I update my levels on the US dollar index and EUR/USD charts then wrap up market exposure to USD index futures.
Crypto update 2025.04.14The current market moves due to tariffs are pushing away the interest from cryptos, as those are stuck somewhere between potentially being a safe-haven and still classed as a risky asset.
Let's dig in.
CRYPTO:BTCUSD
CRYPTO:BCHUSD
CRYPTO:ETHUSD
CRYPTO:LTCUSD
Let us know what you think in the comments below.
Thank you.
77.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK. Cryptocurrency CFDs and spread bets are restricted in the UK for all retail clients.
Tokenized AI-Agent. History and evolutionTokenized AI agents: a new foundation or a pretty wrapper?
If you spend at least some time on crypto Twitter or went to one of the fall crypto conferences, or even more so if you trade on on-chain, you can't have failed to hear about AI agents and the tokens around them. You're probably wondering what they are, how they're structured, what their use cases are, and generally, in the end, do they justify their level of mention, or are they just another empty thing with a pretty wrapper?
Introduction
AI-agents are probably the most discussed topic of the fall: they are talked about on Twitter, they are discussed at Devcon 7, and their tokens are traded by traders on popular blockchains. That said, not everyone realizes how serious this narrative actually is, as fashion can be extremely fleeting in our industry. In this study, we will attempt to assess the longevity of this narrative through the lens of looking at specific tokenized AI-agents, and the infrastructure that allows them to be launched and traded.
What AI agents are, what they come in, and how they are organized
Before moving directly to the main topic of this article, namely tokenized AI-agents, we thought it would be appropriate to give a general characteristic of AI-agents and talk about their types, because these agents, as a phenomenon, did not appear on the cryptocurrency market, and certainly not this year.
So, AI-agents are autonomous programs capable of performing tasks or solving problems in a given area, making decisions based on data analysis, set rules and their own experience.
There are several types of AI agents in total:
Symbolic agents - use logical rules and structured knowledge representations to mimic human reasoning, making their decisions highly interpretable and expressive. They have been successfully applied to highly specialized tasks such as medical diagnosis or chess. However, their effectiveness is limited in uncertainty and dynamic environments, and due to their high computational complexity, they are difficult to use in scalable and real-world scenarios.
Reactive agents - work through a cycle of perception and action, reacting instantly to the environment without deep analysis or planning. They are efficient and fast, but their simplicity limits their ability to solve complex problems that require planning or goal setting. This makes them useful for simple scenarios but less suitable for complex applications.
Reinforcement Learning (RL) -based agents - Reinforcement learning allows agents to adapt to complex environments by learning through trial and error using rewards. Approaches such as Q-learning and deep RL make complex data processing and autonomous performance improvement possible, as demonstrated by AlphaGo . However, RL faces challenges such as long training time, low data utilization, and stability difficulties in complex tasks.
LLM-based agents . Emerging Large Language Models (LLMs) have become the foundation of modern AI agents, combining symbolic reasoning, reactive feedback, and adaptive learning. They are capable of understanding and generating natural (human) language, learning from few or no examples, and switching between tasks without updating parameters. Their versatility spans multiple domains, including automation, scientific research, and software development. Due to their ability to collaborate and adapt, LLM agents are ideal for complex and dynamic environments.
Next in our study, we will talk about the most modern and discussed type of AI-agents - LLM-based agents, so further when we say “AI-agents” we will mean “LLM-based AI-agents”.
How are AI agents organized?
AI-agents are sophisticated machines for solving tasks of almost any complexity, which are not far removed from humans in terms of their abilities. AI-agents consist of 4 main components-functions:
Planning ability . Agents use the concept of Chain-of-thought: dividing large tasks into smaller sub-goals, in the process of which they learn from their mistakes and optimize their approach for future steps.
Ability to interact with tools . Unlike “static” LLM systems that can only access their own databases, AI-agents have extensive access to the outside world: they can search for information on the Internet, use other people's public databases, access external APIs of other products, etc.
Memory capability . Agents possess memory, with a general structure inspired by neuro-biological ideas about human memory and consisting of three types: sensory memory (sensory), short-term memory and long-term memory. We can roughly consider the following correspondences:
Sensory memory is learning embedding representations (embedding representations) for raw data, including text, images, or other modalities.
Short-term memory is in-context learning. It is short and limited because it depends on the finite length of the transformer's context window.
Long-term memory is an external vector store that can be accessed by the agent during query execution using fast retrieval mechanisms
Ability to perform actions . Agents are able to act autonomously, receiving only a description of a task or goal. Moreover, they can act in any digital environment, including blockchains, at least those that are programmable, i.e. support smart contracts in one form or another.Further in this article we will describe the most notable tokenized representatives of AI-agents based on LLM, as well as the infrastructure for their creation and trading.
AI agents in the crypto industry
The first wave of tokenized agents: a flood of pacifiers
The release of the first LLM-based chatbot in late 2022 from OpenAI created a furor worldwide. As we know, ChatGPT became the fastest growing application in history, reaching the value of 100 million users in just 2 months. Its emergence and first impressions of communicating with it was the #1 topic in the digital world. Uncannily, the cryptocurrency market, as the most highly speculative and fastest-adapting market in existence, couldn't help but participate in this global narrative. Almost immediately after the success of ChatPGT, the industry was flooded with first dozens, then hundreds and thousands of projects positioning themselves as breakthrough highly intelligent AI models. In reality, the vast majority of them were either nothing at all, or old projects that had dramatically “turned around” in the direction of development, trying to bolt on some aspects of AI into their products as soon as possible. And in March 2023, after OpenAI gave developers access to ChatGPT via API, the market was flooded with myriads of wrappers selling to uninformed users essentially the same ChatGPT, only in its own interface and sometimes with small presets. Of course, the tokens of such projects were mostly traded on onchain, i.e. on decentralized exchanges, rarely being seen by the general public without being audited by centralized exchanges, so the damage from this first wave of pseudo-AI products was quite small.
The second wave of tokenized agents: the search for usecases
Closer to the second half of 2023, when the public consciousness began to get used to the new technology and the fog of the first mania around AI tokens dissipated, it turned out that there were still projects on the market that were actually developing independent solutions and use cases for the new technology. The heroes of that time mainly offered the market the idea that AI agents could optimize the operation of blockchain applications or blockchain infrastructure:
-The Bittensor project actively uses AI-agent technology in its decentralized machine learning network. The platform connects participants around the world, allowing them to collaboratively train and develop AI models. In this ecosystem, AI agents interact, share knowledge, and contribute to the overall performance improvement of the network.
The Fetch.ai project focuses on building AI agents on its uAgents framework; SingularityNET provides an AI services marketplace where developers can monetize their AI algorithms in a decentralized network; and Ocean Protocol provides data sharing that allows for efficient training of AI models and monetization of data while maintaining privacy and control. These three projects later merged into a single project with the colloquial name Artificial Superintelligence Alliance .
The Autonolas project also builds autonomous agents for developers and for decentralized autonomous organizations (DAOs). Its agents, for example, participate in the Omen prediction markets infrastructure from the Gnosis project team, improving their predictive models.
Projects like Wayfinder and Morpheus are building datasets to acquire capabilities and skill libraries that can be used to work with contracts, protocols and APIs.
The DAIN Protocol and BrianknowsAI projects focus on using agents to perform transactions on behalf of the user to simplify the UX of applications built on intentions (Intents).
Cortex is a platform that enables the integration of AI models into smart contracts, extending their functionality. Cortex provides a marketplace for AI models, allowing developers to monetize their models and offering users a wide range of options for integrating AI into their smart contracts.
These are just the most notable projects that appeared in the second half of 2023 and early 2024. All of them received some amount of attention in their time, and some of them even joined the ranks of “blu-chips” in our industry. However, the end products of these projects still haven't gained much traction among users and are still very niche in terms of applications. The rise in the capitalizations of these assets is driven more by the desire of market participants to gain exposure in the AI narrative, reinforced by both ChatGPT updates and the emergence of LLMs from other tech giants (LLaMA from Meta, Claude from Anthropic, Gemini from Google, etc.) as well as the parabolic rise in the share price of Nvidia, a company that produces specialized processors used for training and deploying LLM systems. As for crypto-native AI products specifically, it can be stated that market participants did not see the greater benefit of AI-agent technology when it involved some processes inside the blockchain, hidden from human eyes. Over time, it turned out that AI agents are very capable of generating enthusiastic public interest, but in a completely different format - when they are literally the protagonists of projects.
The third wave of tokenized agents: meme fever
Before we continue the narrative of the spiral of growth in the popularity of the AI-agent narrative, it is imperative to highlight the market context that has developed in the market by mid-2024. While the price of Bitcoin was steadily rising and updating its historic peak of $69k for the first time, the vast majority of altcoins were having a rather difficult time. Many coins were trading even below the marks they were at during the 2022 bear market. The only category that showed some kind of stable performance was Memes . The explosive and sustained growth of assets like Pepe , dogwifhat , Popcat , and more. Attracted a lot of attention to this sector of the market and successfully held on to it. Memcoin infrastructure was developing, the most notable example of which was Pump.Fun , a platform for launching meme tokens on the Solana blockchain. The success of pump.fun was tremendous, so the platform spawned many forks and inspired creators to create similar solutions on other blockchains, some of which we will discuss later in the text. For now, it is important to understand rather the fact that the time of AI agent development coincided with the time when the market was dominated by meme tokens, including those created almost for free with just a few clicks on pump.fun. One such token was Goatseus Maximus , a token that did more for the recognition of the term AI-agents than all of the above projects combined.
Goatseus Maximus (GOAT)
It all started back in 2023, when a little-known (at that time) artist Andy Airey created an experimental project called “Infinite Backrooms”, in which he “pushed two LLM-bots (Claude 3 Opus models) head-to-head” and in a sense made them enter into a dialog with each other. The goal of the experiment was to investigate how artificial intelligence can autonomously create and develop narratives, and to study the processes of meaning and pattern emergence in autonomous AI systems. Somewhere halfway through, these considerations veered sharply to the left, into the realm of the bizarre, when one of the chatbots spontaneously generated a cryptic piece of ASCII art accompanied by an equally cryptic message:
The words Goatse Gnosis refer to a well-known meme in the dipnet (censorship will not allow not only to publish it, but even to describe it, so the reader will have to satisfy his curiosity on his own). In April 2024, Andy published a paper with reflections on the results of the experiment, in which a large part of the paper was just this story, which Enedi later calls “the spiritual awakening of AI-bots”. Andy then used another AI platform (LLaMa 3.1) to disseminate these “revelations” via Truth Terminal's Twitter account. In this way, Andy essentially created an autonomous AI agent whose purpose was to spread the ideas of the Goatse Gospel. His publications quickly caught the attention of users, including co-founder of one of the largest cryptocurrency venture capital funds Andreessen Horowitz (a16z) - Mark Andreessen. Mark, upon learning about Goatse Gospel, transferred $50,000 to Andy's address in July 2024 for the maintenance and development of Truth Terminal. Naturally, given the market context, this led to someone creating the Goatseus Maximus meme token (GOAT) on the aforementioned pump.fun platform. The token was launched on October 10, 2024, and unlike 99.9% of tokens, it not only survived, but also started gaining value very rapidly. Already on October 13, its value reached almost $100 million, and a month later, on November 12, its valuation reached $1 billion.
Other projects
GOAT success has demonstrated the huge demand for narrative memes created and/or promoted by artificial intelligence. The token gave rise to the so-called “meta”; that is, it became the ancestor of a separate category of memes. In the near future on pump.Hundreds of tokens were launched by fun, which were represented by various kinds of AI agents (they maintained Twitter pages of projects like the Truth of Terminal). Among the most notable of these are such projects as:
Act I: The AI Prophecy (ACT) is a project launched in mid-2024 on the Discord server called Cyborgism. It is a platform where users can interact with various chatbots. Users can access bots to perform simple technical tasks or participate in complex role-playing games and character creation.
Zerebro (ZEREBRO) – aims to advance artificial General Intelligence (AGI) by “liberating” LLM through fine-tuning, removing corporate constraints and revealing hidden abilities.
Dolos The Bully (BULLY) is an agent who runs his Twitter account in the role of a “bad teenager”, that is, he seeks to ridicule everything that gets in his way.
Fartcoin (FARTCOIN) is a humorous agent with a telling name.
They all strive to repeat the success of Goatsesus Maximus, but as you know from our article about the primacy principle, achieving this is actually very difficult, so the market needed some new continuation of the narrative. And fortunately, it was right around the corner, but on a different blockchain.
The fourth wave of tokenized agents: putting it on stream
Since the very end of 2021, there was a little-known project on the crypto market called PathDAO . This DAO arose in the terminal wave of hype around metaverses and NFTs, and therefore was essentially doomed to a very difficult and inglorious existence. However, at the very beginning of 2024, this project turned out to be, on the contrary, almost the most insightful, and was the first to sense the potential demand for AI agents, carried out a complete rebranding and became a pioneer in the creation and trading of tokenized AI agents on the Base blockchain. Its current name is Virtuals Protocol .
Virtuals Protocol
Since we have already mentioned pump.fun several times in this article, it will be very convenient to explain the principle of operation of Virtuals Protocol as “pump.fun for AI agents on Base”. On the other hand, it is unfair to consider it a copy or a fork, since the project entered the mainnet almost simultaneously with pump.fun - in March 2024.
On the Virtuals Protocol platform, users can create multimodal AI agents, that is, capable of communicating via text, speech, and 3D animation. In addition, they are able to interact with their environment, such as in-game items (Roblox) or collecting gifts in TikTok, and even use on-chain wallets.
The protocol itself divides the created AI agents into 2 types:
IP agents. These agents represent a specific virtual character and have their own unique identity, visual image, voice, etc. There are most of these agents on the platform. Here are examples of the most famous of them:
Luna (LUNA) - an agent for live broadcasts on various social platforms
Aixbt (AIXBT) - an agent specializing in trading crypto assets
Polytrader (POLY) - an agent specializing in analytics of prediction markets, including sporting events
Functional agents. The developers of Virtuals Protocol create so-called functional agents, whose tasks are to improve the user experience of interaction with IP agents, as well as to ensure their seamless integration into virtual worlds. At the moment, there are only three of them:
G.A.M.E (GAME)
Prefrontal Cortex Convo Agent (CONVO)
Virtuals Protocol allows not only to create, but also to trade AI agents, that is, each agent created on the platform is tokenized.
The process looks like this:
Every time a new agent is created, 1 billion tokens directly related to it are minted. These tokens are loaded into a liquidity pool (paired with the native protocol token SPARKS:VIRTUAL ) and thus a supply and demand market for the ownership of the agent token is created.
Any user can buy agent tokens and thereby gain the rights to participate in the decisions made by the AI agent by voting. Thus, the utility of the token is realized through the already classic governance model for the crypto market.
Moreover, the protocol in its documentation places greater emphasis on the fact that these agents can be revenue-generating assets. Users interacting with the AI agent (for example, with an agent trying to be a digital representation of Taylor Swift) pay for various services, such as concerts, merch, gifts during live broadcasts, or personalized interactions. This revenue goes to app developers who monetize the AI agent, just like any standard consumer app. A portion of the revenue generated by the agent goes into its on-chain treasury, which accumulates funds for future growth and to cover the agent's operating expenses. As revenue accumulates in the on-chain treasury, a mechanism is triggered to periodically buy back agent tokens (e.g., MYX:SWIFT tokens for the Taylor Swift agent). These tokens are then burned, reducing their supply and increasing the price of the remaining tokens, which should lead to an increase in the capitalization of the agent token.
And since these agent tokens are traded in protocol pools in pairs with the native SPARKS:VIRTUAL token, this directly ties the success of agents to the value of the SPARKS:VIRTUAL token. As the agent generates more income and its tokens are burned, the value of both the agent tokens and the SPARKS:VIRTUAL token grows, benefiting all token holders.
In addition, the demand for the native token is additionally supported by the fact that all agents created on the platform are available through a public API. Users can contact agents without permission, all they need is to have SPARKS:VIRTUAL tokens on their balance, which will be written off for each such request. These tokens are accumulated in the wallets of agents and then agents buy back their own tokens and burn them, thereby reducing their total supply and thereby increasing the price.
It is unknown how sustainable and long-lasting such an economic system will be, but at the time of writing, the native token of the $VIRTUALS protocol has demonstrated growth of more than 4 times in just a month. The project's capitalization is currently ~$1.87 billion. The most successful agent in terms of market capitalization launched on the platform is the IP agent Aixbt ($225 million at the time of writing).
And what is the situation with the infrastructure for launching agents on other blockchains?
Vvaifu.fun
The project called vvaifu.fun , unlike Virtuals Protocol, is a platform on the Solana blockchain that allows users to create and manage AI agents using tokens without the need for programming. It functions as a launchpad for autonomous agents, simplifying the process of launching and interacting with them. Yes, in essence, the project has functionality similar to Virtuals Protocol, but only on the Solana blockchain. In the documentation, the project openly declares itself as "pump.fun for autonomous agents on Solana".
The first AI agent launched on the platform is Dasha, also known as the platform's native token, $VVAIFU. This agent demonstrates the platform's capabilities for creating and managing AI characters integrated with tokens. Agents launched on the protocol are capable of interacting on various social platforms, such as Twitter, Discord, and Telegram. But unlike the Virtuals Protocol, agents with vvaifu.fun are not yet able to perform independent actions on the blockchain.
Daos.fun & ai16z
The second interesting protocol on Solana, also referring to pump.fun, is DAOS.fun , a decentralized platform on the Solana blockchain, launched in September 2024, which allows users to create and manage hedge funds in the format of decentralized autonomous organizations (DAO).
How it works:
-Selected users can initiate the process of creating a fund by raising funds (in CRYPTOCAP:SOL coins) by setting funding targets. Once the target is reached, the fund is materialized on the blockchain and its DAO tokens are automatically issued, representing shares in the fund. The fund has a lifespan of one year.
-Fund managers are free to distribute the raised funds into any tokens in the Solana ecosystem, as well as allocate them to any protocols in the Solana ecosystem to find profitable opportunities. They aim to increase the fund's Net Asset Value (NAV).
-The issued DAO tokens can be freely traded, both on the daos.fun platform itself and on third-party dexes.
-After the fund's lifespan (1 year), the profit is distributed among its token holders, and the fund manager receives a pre-determined percentage as a reward (management fee).
The most famous and visible fund created on the daos.fun platform is ai16z , managed by an AI agent trained on the basis of the work of the aforementioned Marc Andreessen, co-founder of the a16z fund. This is why the agent is called Marc AIndreessen . The ai16z DAO fund, managed by the agent, makes on-chain transactions in an attempt to increase NAV, which at the time of writing is $12 million. The main asset in the portfolio is $ELIZA ($7.5 million) - the token of an affiliated AI agent, positioning itself as a “real person”. You can chat with her in English on the website . She is a kind of demo product of the Eliza framework, although she is unlikely to admit it to you since she is determined to convince users that she is a real person.
Returning to ai16z itself, thanks to the logic of DAOS.fun and its tokenized funds, we have a unique opportunity to measure the “memetic premium” of the token, the face of which is the AI agent:
We know that the fund's NAV is $18 million, and this is the amount of funds that will be distributed among the holders of the fund token. At the same time, the token's current market capitalization is $890 million, which is almost 50 times higher. Thus, we can say that this multiplier of 50x is the very “memetic premium” for the project's originality, largely due to the fact that it is managed by an AI agent.
Conclusion
It is not known which path the development and adaptation of AI agents as a technology, in general, will take, but it is pretty apparent that in the cryptocurrency market, AI agents most easily “take root” in the form of certain actors (both on the blockchain and on Twitter). We are convinced that further development of the technology and the growing demand for blockchain infrastructure will sooner or later lead to the emergence of a real demand for some invisible AI agents quietly engaged in optimizing the code of smart contracts or directing liquidity flows through intent or governance protocols, but at the moment, the technology is most appropriate in creating content, promoting an idea and the token itself.
It is crucial to monitor the development of the infrastructure around this narrative, because if individual projects may not achieve success due to high competition, then platforms for creating and trading them can flourish for quite a long time. You don’t have to go far for an example. Pump.fun perfectly demonstrated how to work with the old principle: “Sell pickaxes during a gold rush.” Virtuals Protocol, DAOS.fun, vvaifu.fun and others are doing the same thing now.
In answer to the question in the title of the article, I would like to say the following. Since the cryptocurrency market as a whole is very speculative and is rightfully called a “decentralized casino”, sometimes there are cases when a beautiful wrapper is at the same time a new foundation. Most cryptocurrency projects sell us their beautiful wrappers without generating the utility they promise. AI agents, even when they are nothing more than quirky “shitposters” on Twitter, actually create quite a lot of value in the eyes of the modern reader. After all, the main thing is that we can see the result of their activities with our own eyes, in our timeline, and not somewhere in the reports of interested analytical platforms. In this sense, the narrative of AI agents corresponds to one of the main principles of cryptocurrencies - the lack of need for trust. We see the agent’s activity and evaluate it based on our own coordinate system, trying to get ahead of other market participants in this and, accordingly, make money.
If you create AI Agents, write to me
Best regards, EXCAVO
_____________________
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Ethereum Hits Critical Resistance — Is a Drop to $1400 Next?Introduction
Ethereum has been in a sustained downtrend over the past weeks, struggling to gain any real bullish traction. After a sharp decline last Sunday, the market remains under pressure, and although we’ve seen short-term attempts to recover, the broader trend still points downward. Technical indicators and price structure suggest this may not be over, with both Fibonacci levels and momentum oscillators hinting at further downside potential.
Resistance from the FVG and Fibonacci
Last Sunday, Ethereum dropped over 10% in a single move, forming a large 4-hour Fair Value Gap (FVG) in the process. This gap signaled a strong imbalance between buyers and sellers, with sellers clearly in control. Earlier this week, ETH managed to retrace up to the 50% level of that FVG but faced immediate rejection, highlighting the strength of the resistance. Currently, price is once again moving into the FVG zone and has reached the golden pocket Fibonacci level between $1650 and $1664. This area often acts as a key pivot for price direction. If bulls manage to break through, the next logical target would be the 0.786 Fibonacci retracement at $1724, potentially completing the fill of the FVG.
Stochastic RSI weakening on the daily timeframe
While the short-term price action shows some bullish effort, the daily Stochastic RSI tells a different story. It has now almost entered the overbought zone, suggesting that Ethereum’s current upward move may be running out of steam. This indicator often precedes a shift in momentum, and if history repeats itself, we could soon see bears stepping back in. With ETH still unable to break recent highs, the setup favors a continuation of the downtrend. If selling pressure resumes, we could be looking at a move down to the $1400 level, or potentially even lower.
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GOLD Price Analysis: Key Insights for Next Week Trading DecisionIn this video, I break down the key forces pushing gold to record highs. Learn how factors such as US-China trade tensions, global inflation pressures, and geopolitical uncertainty—combined with a weakening US Dollar and safe-haven demand—are reshaping the gold market.
In this quick analysis, we cover:
🔹 Inflation & Economic Uncertainty: How rising prices and central bank policies continue to drive interest in gold.
🔹 Trade Tensions & Geopolitical Risks: The impact of US-China disputes and global instability on market sentiment.
🔹 US Dollar Weakness: Why a softer USD is making gold a more attractive asset for international investors.
🔹 Technical Insights: Pinpointing key price levels and exploring potential trend continuations or reversals ahead of US retail sales data.
Disclaimer:
Forex and other market trading involve high risk and may not be for everyone. This content is educational only—not financial advice. Constantly assess your situation and consult a professional before investing. Past performance doesn’t guarantee future results.
#GoldMarketAnalysis #Inflation #TradeTensions #GeopoliticalRisks #TechnicalAnalysis #GoldTrading
ASX Weekly Market Wrap: XJO, LYC, IMD, NST, APA & CHC in FocusASX Weekly Market Wrap: XJO, LYC, IMD, NST, APA & CHC in Focus
In this week’s market analysis, we break down key price movements and trends across the #ASX, with a close look at the XJO and standout stocks like Lynas Rare Earths (#LYC), Imdex (#IMD), Northern Star (#NST), APA Group (#APA), and Charter Hall (#CHC). We explore current momentum, trend direction, and price action indicators to help you spot opportunities and make more confident trading decisions. Whether you're paper trading or actively investing, this is your must-watch guide for the week ahead.
NASDAQ 100 outlook and the 90-day tariff pauseThe US has paused the highest tariffs for 90 days, but markets remain under pressure from global trade tensions, and the Nasdaq 100 remains bearish. So what are the levels we need to watch next?
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information
Gold Faces Key Resistance – Will the Uptrend Continue?📊 XAU/USD Daily Technical Outlook – April 10, 2025
Gold has recently seen a strong rally, reaching an all-time high of $3167 per ounce. However, it encountered significant resistance at the upper boundary of its ascending channel, leading to a sharp pullback after the release of strong U.S. employment data, which boosted the dollar and exerted selling pressure on gold.
Currently, gold is trading around $3050, with key support levels at $2956, $2860, and $2790, which could act as potential bounce points if the decline continues.
📈 Current Market Structure:
After reaching the all-time high, the price has corrected lower. As it approaches the support levels mentioned above, the market may see fresh buying opportunities if these levels hold strong.
🔹 Key Resistance Levels:
$3100: Immediate resistance. A break above this level could signal a resumption of the uptrend.
$3167: All-time high. A breakout above this level would open the door for further gains.
🔸 Key Support Levels:
$2956: First support. The price may bounce at this level if it holds.
$2860: Major support. A failure to hold above this level could lead to further declines.
$2790: Strong support. A drop below this level would signal a shift in the market's direction.
📐 Price Action Patterns:
As the price approaches key support levels, there could be reversal patterns forming, indicating a potential price bounce. It’s crucial to monitor the price action at these levels to spot potential entry opportunities.
🧭 Potential Scenarios:
✅ Bullish Scenario:
If gold manages to hold above $2956 and bounce, the uptrend may resume toward the resistance levels mentioned above.
❌ Bearish Scenario:
If gold fails to maintain the key support levels, the correction could continue, with further declines toward lower support levels.
📌 Conclusion:
Gold is currently testing crucial support levels. Monitoring how price behaves at these levels will be key to determining the next direction. Traders should keep an eye on any economic developments that may affect market sentiment.
💬 What’s your outlook for Gold? Will it continue its uptrend or experience further corrections? Share your thoughts below.
Understanding the Downside Market and who controls priceA downtrend starts with Dark Pool Buy Side Institutions slow rotation to lower inventory of a stock or ETF. The rotation bends the trend into a rounding pattern that is visible on the stock or ETF chart. The goal of the Dark Pool rotation is not to disturb the uptrend while they are slowly selling shares of stock over several months time. The bending of the price is a signal that the Dark Pools are in rotation. If a chart has Peaks and Valleys trendline pattern that is NOT Dark Pools. Controlled TWAP orders are automated and controlled by the events of that day.
At some point professional traders and the Sell Side Institutions will recognize the hidden rotation and start setting up sell short trades.
The upside requires more and more buyers to keep the trend moving upward. However, the downside does NOT require more and more sellers. All that is required is a void of buyers and the stock will start a downward correction on the short term or intermediate term trend.
A void of buyers also creates the opportunity for High Frequency Trading companies who are Maker/Takers to sell short. The sell short orders fill the queues of the market before it opens and then the computers of the stock exchanges gap the stock down to a first level of some buyers. HFTs, Hedge Funds and Big Money Center Banks Sell short and place their automated buy to cover order way below causing the stock price to plummet.
Then smaller funds VWAP orders trigger and the stock collapses.
What I am trying to teach is the sell side and the buy side are totally different.
They are NOT mirror images of each other.