OPUSDT - Who is in control? Look at the pitchfork - Not the wedg
As I look at the OP chart, it is hard to ignore the massive wedge that is forming but I ask you to take another look at the formation.
Zoom out and lets not forget that the move leading into November 5, 2022 was a rejection at the 61.8 internal retracement level. This type of rejection, which is one of my favorite trades to take, has a target at the -23.6% extension. This would target around 47 cents. I know that sounds ridiculous as it is about half of where we are at today.
Lets take a look at the pitchfork that I've placed on this chart. If you're not familiar with pitchforks, you simply use the pivot points from the high, to the low and rebound to that 61.8% rejection I spoke of in the previous paragraph. Notice how the upper trendline of the pitchfork aligns perfectly with the "wedge" that everyone is focusing on.
Now that we're focusing on the pitchfork, lets also not forget that trendlines do matter and we broke through one on December 16, and only a couple days later, retested it perfectly. By my estimation, OP has potential to go up to about 99 cents to 1 dollar and will see a rejection from there. Likely going into the end of next week.
I certainly wouldn't be looking for longs yet, though. Unless OP breaks out of this range, I will only be looking for shorts.
Why shorts when I think it'll go up, you ask?
Because you'd be gambling. Think like the "whale" that sold at $1.38 that caused the price, within only a couple days, go drop from 1.38 down to 76 cents. Whoever controlled the OP market that much said "ok, I'm done" and the only way they'll inject capital back into this is if one of two things happens:
1. The price drops enough where it's worth it for them to re-accumulate
2. Another player takes an interest and marks up the price beyond the downtrend line that has formed.
Back in 2017, after XVG pushed up to 2000 sats and saw a swift pullback to 800 sats. I happened to know a group of players that controlled the XVG market and they told me they wouldn't touch XVG unless it went back above 1500 sats. When I questioned them, they stated simply that they were out and weren't looking to get back in unless there was a continued retail frenzy which looked to be drying up, evidenced by the lack of volume.
Speaking of volume, have you looked at the volume on OP since November 10th? It's basically insignificant. This is key.
I believe OP will see roughly 64 cents by mid-January and I'd be interested in taking a bite there. If it fails, we will see 47 cents.
Zoom out and lets not forget that the move leading into November 5, 2022 was a rejection at the 61.8 internal retracement level. This type of rejection, which is one of my favorite trades to take, has a target at the -23.6% extension. This would target around 47 cents. I know that sounds ridiculous as it is about half of where we are at today.
Lets take a look at the pitchfork that I've placed on this chart. If you're not familiar with pitchforks, you simply use the pivot points from the high, to the low and rebound to that 61.8% rejection I spoke of in the previous paragraph. Notice how the upper trendline of the pitchfork aligns perfectly with the "wedge" that everyone is focusing on.
Now that we're focusing on the pitchfork, lets also not forget that trendlines do matter and we broke through one on December 16, and only a couple days later, retested it perfectly. By my estimation, OP has potential to go up to about 99 cents to 1 dollar and will see a rejection from there. Likely going into the end of next week.
I certainly wouldn't be looking for longs yet, though. Unless OP breaks out of this range, I will only be looking for shorts.
Why shorts when I think it'll go up, you ask?
Because you'd be gambling. Think like the "whale" that sold at $1.38 that caused the price, within only a couple days, go drop from 1.38 down to 76 cents. Whoever controlled the OP market that much said "ok, I'm done" and the only way they'll inject capital back into this is if one of two things happens:
1. The price drops enough where it's worth it for them to re-accumulate
2. Another player takes an interest and marks up the price beyond the downtrend line that has formed.
Back in 2017, after XVG pushed up to 2000 sats and saw a swift pullback to 800 sats. I happened to know a group of players that controlled the XVG market and they told me they wouldn't touch XVG unless it went back above 1500 sats. When I questioned them, they stated simply that they were out and weren't looking to get back in unless there was a continued retail frenzy which looked to be drying up, evidenced by the lack of volume.
Speaking of volume, have you looked at the volume on OP since November 10th? It's basically insignificant. This is key.
I believe OP will see roughly 64 cents by mid-January and I'd be interested in taking a bite there. If it fails, we will see 47 cents.
