Moving to the technical portion, starting from the weekly, the price behavior is very clear and is showing a lot of signs. The price was breaking structures to the upside, but recently it broke structure to the downside which resulted in a change of character. Now the overall structure edge is to the downside. Now talking about the phases, the price can be considered in a descending correction. As the bearish impulse has already formed and been anticipating a correction, the price is making a descending correction pattern which shows that price might bounce to the upside sooner.
Now talking about the candlestick language, if we observe that recently after 2 bearish candles, a bullish candle is formed. Similarly in here, 2 bearish candles have been formed, and now another bullish candle can be anticipated.
Moving down to the daily Time frame, the price is showing almost the same patterns, the price has the impulse to the downside, and now is in a descending correction which shows bullish signs.
Now to make the situation more visible and clear, the price as discussed above is in a descending correction and is following a descending wedge pattern. Now most traders actually wait for the price to break to the upside and then enter, but as the majority expect that, it’s very possible for price to manipulate this pattern. As it can be seen on the chart, the level of $0.0174 has equal lows which show there is a lot of liquidity below that which price can target, and after grabbing that, a bullish run can be expected.
Target Levels – Verasity (VRA)
Talking about the targets the main target can be considered as the level of $0.0260 because that level contains an unmitigated order block. Which can serve as a magnet and can drive the price to that. Now first targets could be around $0.02258 as that’s an equilibrium of that wick and it serves as resistance. Why so? Because larger wicks on the higher time frame, mostly show any sort of order block or point of interest on lower time frame. Talking about the invalidation point, if the price breaks the level of $0.0154 this whole scenario would get violated. As that level contains an order block in the past which could serve as a support for the price, and if the price violates that, it will show that bears are in control.
