After last week’s dive to lower depths, whereby the entire cryptocurrency universe was treated to yet another sharp leg lower, there has been little to no meaningful bounce out of the recent lows, thus far.
While we certainly expected/suspected a more vibrant bounce in order to work-off the short-term oversold conditions, we’ve yet to witness such action and in fact, the entire cryptocurrency landscape appears content in consolidating the recent leg lower via side-ways grind.
As a result, we’re starting to see numerous names, both large-cap as well as some of the Altcoins, beginning to carve-out inverted pennant formations as we can observe from the charts below.
Although such formations remain in development and have as of yet to break either topside or to the downside, it’s evident that the formation of such pattern continues to tightly coil where we suspect that it’s only a matter of time before these pennants witness resolution.
That being said, let’s take a quick look at the following technical posture of but a handful of names that continue to display the inverted pennants.
As we can witness from the above charts, each sports the inverted pennant formation. While we’re not specifically isolating this phenomenon to those solely referenced above as we could all but showcase another several dozen that remain in an identical technical posture, due to time and space constraints, we wanted to provide readers of Global Coin Report merely a visualization of what is taking place throughout the landscape.
In addition to the developing short-term inverted pennant formations throughout awaiting resolution, it’s quite obvious that bearish conditions remain from a cyclical perspective within the context of a much larger secular bull when you zoom-out the time-frames to a monthly technical glance.
Nevertheless, both investors/traders may want to continue to monitor the action of the here-and-now, which is suggestive that we are going to witness a resolution in one direction or the other in the days ahead.
While we suspect that resolution favors a breach out of the pennants to the downside, as investors/traders, we must always defer to the action of the market itself and leave our biases at the door and be prepared for any and all potential outcomes via proper risk management mitigation measures.
Therefore, for those short-term traders, continue to keep things on a tight leash and honor Your Stops, while for those longer-term investors, patience and discipline remains in order until and or unless the storm clouds subside awaiting the dust to settle.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com