DFI.Money (YFII) Again Rejected By Strong Resistance | Was It A Bull Trap ???
Previously the price action broke down the support of the pennant on daily chart. But in the very next candlestick, we can observe a powerful buying volume therefore while re-testing the previous support as resistance the price action of DFI.Money re-entered in the pennant. Finally, the price action of the YFII token also broke out the resistance of this pennant. But the priceline is still below the exponential moving averages with the time period of 10 and 21. For confirmation of the change in trend from down to upside, we need crossing above these EMAs 10 and 21 and a bull cross between these EMAs as well.
In my previous post, we have seen that on a small-time period 4-hour chart the priceline of YFII token broke down all simple moving averages with the time period of 25, 50, 100, and 200 and there was a big distance between all these moving averages and the candlesticks. At the moment the price action is again breaking out the 25 SMA and soon it can also break out the other simple moving averages as well. For complete trend change from down to up, we need the closing above all these SMAs.
On the daily chart, the price line is also completing the final leg of bullish Butterfly. But the priceline cannot complete this leg because if we see the trader’s interest as per the volume profile of complete price action of this butterfly. Then it can be clearly observed that traders have no interest in trading below $800 and this can be the last support as well. The priceline has also a very strong resistance at $2600. In my previous article, I also mentioned this resistance and now the priceline is rejected by this resistance. So the previous short rally to the upside worked as a bull trap for many traders. However, the priceline is moving with the pivot 1st support and point of control of the volume profile.
Conclusion:
The priceline is moving with pivot 1st support and point of control of volume profile, therefore, is the priceline would be moving here sideways and in the meanwhile, if it will cross up the EMA 10 and 21 on the daily chart and simple moving average 200 on 4-hour chart. Then it can be possible that the trend will be completely changed from down to upside. And if the volume profile will start showing interest of traders below the $800 level in the coming days then more drop can be possible as well.
