On Sunday, January 25, crypto analyst Jonathan Carter pointed out that Chromia’s native token, CHR, is near a potential pivot point. On the two-day chart, a tightening falling wedge pattern is emerging, which is a potential precursor to an imminent burst of volatility.
The pattern suggests that the selling momentum may be slowing down, as CHR holds its ground in a well-identified support zone, while the overall environment in the crypto market remains unclear.
Market participants are closely observing the pattern, as a breakout could influence the momentum and determine the future direction of CHR.
Also Read: Chromia (CHR) Price Holds Steady as Bullish Breakout Toward $1.36 Looms
Carter also highlighted that the token has repeatedly approached the bottom edge of the falling wedge, which is a pattern commonly associated with trend exhaustion rather than a continuation pattern.
As the price moves closer to the apex of the wedge, the probability of a strong move increases, particularly if there is an increase in volume.
If the momentum becomes more bullish, Chromia could first target a breakout around the price of $0.050, with resistance at $0.068 and $0.088 being the next set of levels.
A stronger breakout could target $0.120, while $0.210 would be the target if a complete reversal in the trend is achieved. The current market trend suggests accumulation around the support level.
On the basis of TradingView charts, it is seen that the token is following a known pattern: there is an upward movement, a distribution phase, and finally a breakdown.
The initial upward movement makes higher highs, which indicates that the dominant force is the buyers, peaking at $0.048-$0.050. However, the strength diminishes, and the price fluctuates before the sellers take over, pushing CHR towards the key support level of $0.039-$0.040.
The MACD highlighted this view clearly. In the last rally, it remained strongly positive with the green histogram bars increasing in height, indicating strong bullish pressure.
As the price approached its peak, the momentum ceased and turned negative, with the red bars expanding in width. Today, the MACD and the signal line are both below zero, indicating strong bearish pressure.
The RSI adds more information to the scenario. The earlier readings ranged between 50 and 60, indicating a consistent bullish influence.
With the weakening of the price, the RSI fell below the 50 level, indicating a transition under bearish dominance. Currently, it is in the low 30s, indicating that the selling influence is also overextended, and a pause or relief rally may be due.
CHR’s falling wedge is showing trend exhaustion, which means that a large move is imminent. This is a strategic opportunity to enter or exit the market as it consolidates.
The technical indicators show that the selling momentum has been overstretched, and there is a support level at $0.039-$0.040. This is a critical juncture where a change in momentum may influence the price movement.
Also Read: Chromia (CHR) Gears Up for Breakout as Price Eyes $0.15 Target
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