Hi Folks hope you are well and welcome to the new update on Holo token. After mid of March the HOT token has surged more than 250%. Now it is likely to start the correction rally. Let's have a look at the price action have some analysis.

The formation of harmonic Shark move:

On January 3rd 2020 I posted an article on tradingview where I revlealed that the Holo token has formed a Shark pattern and it can take the bullish divergence from the potential reversal zone of this harmonic Shark. And this PRZ level starts from 0.886 and ends up to 1.13 Fibonacci retracement level . I was expecting that this Shark will be helpful for a long term bullish rally. Finally the price action started moving up and produced more than 63% profit and dropped down again.

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The next bullish Move, correction rally and SMAs:

After 18th of March 2020 the price action again started another bullish move and surged more than 250%. During this move the pricelilne of HOT broke out all the simple moving averages with the time period of 25,50, 100 and 200 on the daily time frame chart. After breaking out the 200 simple moving average the price action has started a correction rally and it has broken down the 25 and 50 simple moving averages. At this time the price action is at the support of 200 SMA and likely to break down this support as well.

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The Ichimoku cloud is giving bearish signals:

If we watch the ichimoku cloud on the daily time frame chart. Then it is getting squeezed and the the baseline has crossed up the conversion line above the price action that is a bearish signal. The lagging span also has crossed down the priceline this is another bearish signal by ichimoku cloud. Therefore we can expect that soon the priceline will follow these bearish signals and it can cross down the cloud as well. And the cloud will be turned bearish and it will become a resistance for the price action of Holo token.

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The priceline is likely to complete final leg of Cypher pattern:

After all these bearish signals and the correction rally the priceline of Holo token is likely to complete the final leg of bullish Cypher pattern that is a bullish reversal signal. However in order to complete the last leg of the Cypher the hello token needs some more drop. Because the last leg should be e retraced between 0.618 up to 0.786 Fibonacci retracement level. As per Fibonacci sequence of bullish Cypher pattern the potential reversal zone and the Fibonacci projection of C to D leg or in simple words the buying and sell zones are as below:

Potentail reversal zone: $0.00045 to $0.00038

Fibonacci projection: $0.00050 to $0.00062

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As per above targets this move can be up to 63%. However if the priceline will break out the maximum extent of Fibonacci projection area then it can start more powerful bullish rally. The maximum extent of this potential reversal zone should be used as a stop loss otherwise the price action can move more down to complete the last leg of bullish shark pattern.

Conclusion:

Even though the price action is likely to move more down and this can be also called it bearish rally. But the downward move is necessary for the completion of the bullish reversal pattern. Eventually there are strong chances that the price action will take the bullish divergence after the completion of this bullish reversal pattern and we may witness another powerful bullish rally.

Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.