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CFX CRITICAL RESISTANCE LINE AND RISING WEDGEIn this logarithmic chart of BINANCE:CFXUSDT is the near yearly resistance line of the coin. I started to assess this trendline after its pump last week and price consolidation has been observed near on the resistance. Also, sharing this rising wedge pattern below that could be a sign of rejection of the pump and reversal of the uptrend. Presented in yellow arrow line is the bearish divergence from my indicator, RSCD (RSI MACD) forming a lower high and the price forms a higher high. The diagonal support line is also presented. In my view, breakdown can happen but to the point of forming another diagonal support since there would be people who would still want to buy from the pump. But if not, I plotted the potential support lines by using Fibonacci retracement. The coin could enter a reversal but if in case it regains a momentum to breakout on the wedge. I would consider these two potential resistance lines. (1) Currently, the coin has touched the 0.5 resistance level multiple times as it tries to touch again and possibly breakout. With that, consider the 0.618 Fib level. (2) I would also consider the .382 Fib level from its higher high on the daily timeframe. Backtesting this trendline had some events of being a critical trendlines (support and resistance) of the price movement. Overall, based on the structure above, we will see BINANCE:CFXUSDT rejected past the long trendline with a rising wedge pattern on its current movement, favoring a bearish trend. Always PLAN your trades. Happy trading!
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by Habadoo