TokenFI - Tokenfusd - Bullish Outlook / Read the analysisHi Traders,
Here is an extended analysis of TokenFI on the daily chart.
We’re observing a symmetrical triangle that has been forming over the past three months, which broke out to the downside on June 13, 2024. The target for this symmetrical triangle pattern is between 0.02380570 and 0.02130264, aligning with the Fibonacci targets.
However, there’s also the formation of an inverted head and shoulders pattern, with the right shoulder currently forming. For this bullish scenario to remain valid, the price should not drop below 0.04442998, ideally staying above 0.051155033. These levels correspond with key Fibonacci retracement levels of 0.5 and 0.618. If the price breaks out (ideally with volume) above the neckline, the pattern is confirmed. We can then wait for a retracement back to the neckline or remain in the position as long as the neckline is not breached.
I have also considered the RSI and other macroeconomic factors in this scenario. Additionally, since the beginning of August, we’ve seen an increase in volume accompanying the price rise, which adds another bullish element to the setup. Given these considerations, the overall outlook looks promising, especially with the potential support from the inverted head and shoulders pattern, as long as the stop levels aren’t breached.
If we consider the BTC halving cycle as an additional bullish catalyst, the inverted head and shoulders pattern could very well play out.
In summary, as long as the price stays above 0.04442998, the bullish outlook remains intact. I would place a protective stop at 0.040. If the price falls below 0.033611912, it could drop further to the symmetrical triangle target of 0.0230 & 0.0210 and potentially as low as 0.0150.
The target for the head and shoulders pattern is 0.18288831 if the price breaks above the neckline.
The targets in that case would be:
0.084
0.105
0.135
0.165
0.182
0.250
Happy trading and good luck!
Disclaimer: This is my personal analysis and should not be taken as financial advice. Always conduct your own research before making any investment decisions.
