This chart illustrates a bullish reversal setup using Elliott Wave Theory, Fibonacci retracement levels, and RSI divergence. Here's a detailed breakdown:
📉 Elliott Wave Count:
The chart shows a complete 5-wave impulse down labeled (1) to (5), suggesting a potential end of a bearish trend.
Wave (5) appears to have just completed, indicating a possible reversal point.
🔍 Falling Wedge Pattern:
A falling wedge is visible between waves (4) and (5), which is typically a bullish reversal pattern.
Price is near the wedge’s apex, hinting at an imminent breakout.
🟡 Strong Demand Zone:
Price is currently inside a yellow demand zone (roughly $0.0136 to $0.0144).
This zone coincides with the 0.786 Fibonacci retracement level at $0.01363, a common reversal level.
📊 RSI Indicator:
The RSI at the bottom shows a bullish divergence:
Price made a lower low, while RSI made a higher low.
This signals weakening bearish momentum and potential upside ahead.
🧠 Summary:
This is a technically sound bullish setup, suggesting a bottoming structure and an upcoming uptrend. The confluence of Elliott Wave completion, wedge breakout, RSI divergence, and Fibonacci support all point to a strong reversal probability.