Yesterday, we did identify a breakout setup in one of the 30 cryptocurrencies top of our watchlist. We immediately alerted our premium crypto members, simply because this bullish reversal looks pretty powerful. The alert we wrote: “Is This AI Token Ready For A Rally?” It is instantly available in the restricted research area.
In this article, we show the chart and do a chart analysis. In order to respect our premium members, we will not mention the symbol (it would not be fair for our premium members if we would give away all our research in the public space).
The chart priced in USD is a beauty, an absolute beauty.
On January 7th, 2023, when we published an update of the 30 tokens that we track in our watchlist, spread over 7 segments (like AI & Big Data tokens, NFT tokens, Layer2 tokens, etc) we did alert our members that this was one of our top picks. Three to four weeks later, this token went up 5x.
Today, we believe that this AI token is ready for another run, maybe not as steep. If it’s not ready to start rallying now, it will be in maximum a few weeks from now.
The chart is very simple and straightforward:
- The 50% retracement level, by far the most important level, which is 50% between the ATH and the 2022 lows, acted as solid support. We did not see this token spend more than 21 days below this key level. Note that any drop below a specific price point that has a day count that equals one of the Fibonacci series number qualifies a valid bear trap.
- We observe 2 falling trendlines in 2023 (green falling lines). This AI token might require a third falling trendline before it finally breaks out. That’s because many tokens and stocks, in 2022 & 2023, required three breakout attempts before starting a sustained rally.
- That’s why there is a possibility that this token starts rallying to its 38.2% retracement level (fine green line) in the very short term, where it might potentially find resistance. A back-test to the 50% retracement level (which is where it traded yesterday) might be next, although that’s not a given, it’s a scenario with a reasonable probability.
The chart, overall, is a beauty!
The same AI token priced in BTC is shown below. The bullish reversal is clear, outspoken, powerful. We do not find a lot of tokens, related to BTC, that have such a strong bullish reversal at this very point in time.
The chart analysis shown above makes the point that this AI token is a gem. It does not rank in the top, so, in a way, it’s a hidden gem.