XTZ Due For a Correction!?

3 בפבר׳ 2022

Tezos has been pushing up solidly recently from around january 26th we have been on a steady rise, we are currently trading inside of a rising wedge which is actually a bearish pattern and i believe we could be in for a healthy corrective move coming up soon. Don't get me wrong i am overall very bullish on Tezos in the longer term especially but i think we are due for a corrective move any day now. What im looking at is a possible false breakout of this rising wedge we have right now to the upside before coming back down quickly, this would effectively liquidate traders if we saw a move like this happen. Now if we look at our Mean Reversion channel we notice that our "mean" is below us about -15% currently, price tends to come back to this point sooner than later. Now another indication of a move like this happening is because we notice our top yellow/red band is right above the rising wedge, now this part indicates that price action is overbought-strong overbought, so playing back into my scenario with a false upside breakout landing us right in this overbought territory gives me more confirmation that a corrective move is coming. Now another reason is just due to the fact that we have seen very bullish price action recently, we have been steady moving to the upside with little to no corrective moves. Now what i am excited about here is that a move like this will provide yet another great buying and entry opportunity. Now lets look at the RSI, one thing is absolutely amazing, we are currently atleast on our 4H chart in a confirmed uptrend, this is shown by the RSI remaining above the midline for a decent amount of time, now another thing that plays into my prediction is that if we check a percentage drop on the RSI to a likely bounce support we actually line up perfectly with the same percentage as the mean is away from price action roughly 15-15.7%! Not financial advice just my opinion!