$XPL kicked me in my teeth this week if I'm honest, I had a long with a wider-than-usual margin for error, and still got stopped out.
In hindsight, that was not a good entry at all, the set-up was not strong enough plus I rarely trade new coins, and for a reason, as it turned out.
Oh well, we all pay tuition fees to the market gods, and that was an example.
Anyways, the 4-hour chart is starting to shift from bearish to neutral-bullish. A few key developments:
1) TRIPLE BOTTOM pattern. Self-explanatory. The neckline sits at $1.04, so that's where a breakout to the upside could start, targetting $1.25 for starters.
2) SELLING VOLUMES declining on each sell-off. It just means that the sellers are getting exhausted.
3) RSI bullish divergence persisting. Price has been making equal lows (hence the TRIPLE BOTTOM) and lower highs (creating a bearish DESCENDING TRIANGLE), but RSI has been in a subtle UPTREND.
So, my strategy for the week ahead is simple:
Wait for a BULLISH market structure change (higher high above the triple bottom neckline, followed by a retest of that level to print a lower low).
And enter on a BREAKOUT.
We definitely need to see green volume candles getting bigger from tommorow on. This is necessary in order to avoid entering into a FAKE-OUT.
This is on my watchlist and I will update when sth important happens.
Liquidations HEATMAP suggests we could have a final drop to grab liquidity just below (80c - 82c) before a take-off. Closing a few candles below the TRIPLE BOTTOM would be a very bearish sign. 💙👽
