DON'T MISS VELAS AT THIS DISCOUNT PRICES - STILL ACTIVE PROJECTTECHNICAL ANALYSIS AND TRADE PLAN FOR VELAS
Chart Overview
Timeframe: The analysis is conducted on a 4-hour chart, providing mid-term insights.
Pattern Identified: A falling wedge, a bullish reversal pattern, suggests an impending breakout to the upside.
Current Price: Approximately $0.0065564 at the time of analysis.
Volume Analysis: Declining volume indicates price compression, which typically precedes a breakout.
Key Levels
Support Zone (Discount Area): Around $0.0058–$0.0060.
Resistance Zone (Premium Area): First resistance at $0.0080 and a major zone at $0.0100–$0.0120.
Previous Highs (Targets): $0.0140, $0.0220.
Indicators:
RSI (Relative Strength Index): Showing oversold conditions, supporting a reversal.
Stochastic Oscillator: Near bottom levels, indicating a potential bullish crossover.
Volume Oscillator: Low activity with potential for volume surge on breakout.
Price Action:
A series of lower highs and lower lows confirms the falling wedge.
Breakout from the wedge is expected as the price nears the apex, combined with reduced bearish momentum.
Market Sentiment and Team Progress:
The Velas team, led by Alex Alexandrov, is working hard and smart to drive the project forward. Recent updates reveal positive developments and growing confidence in Velas 2.0, as highlighted on their official Twitter account.
According to Accumulated Finance, VLX has strong potential due to its innovative subchain technology and enhanced ecosystem.
Trading Plan
1. Entry Strategy:
Initial Entry (Aggressive): Enter around the current price ($0.0065) with a smaller position to catch the breakout early.
Confirmation Entry (Conservative): Wait for a confirmed breakout above $0.0070 with strong volume before entering a larger position.
2. Take-Profit Targets:
Short-Term Target: $0.0080 (Resistance Zone).
Medium-Term Target: $0.0100 (Major Resistance).
Long-Term Target: $0.0140 and $0.0220 (Key Fibonacci levels and previous swing highs).
3. Stop-Loss Placement:
Initial Stop-Loss: Below $0.0055 (below the wedge support).
Trailing Stop: Move the stop-loss to break-even after a breakout above $0.0080 and trail below each significant swing low.
4. Risk Management:
Allocate no more than 2% of total trading capital to the initial position.
Use position sizing to ensure the maximum loss (based on stop-loss placement) does not exceed predefined risk tolerance.
5. Monitoring Plan:
Volume: A breakout without increased volume may signal a false breakout. Wait for confirmation.
Momentum Indicators: RSI and stochastic should support the move; divergence against the price could invalidate the setup.
Market Conditions: Monitor Bitcoin and general market sentiment, as they can influence VLX price movements.
6. Scaling Strategy:
Add to Position: On a confirmed breakout with high volume above $0.0075, add to the position during retests of support.
Partial Profit-Taking: Secure 50% of profits at $0.0100 and let the rest ride towards higher targets with a trailing stop.
The falling wedge pattern and supporting indicators suggest a strong potential for bullish momentum in the short-to-medium term. The dedication and smart efforts of Alex Alexandrov and his team, combined with the positive momentum from Velas 2.0 and its latest announcements, align with a promising future for VLX.
