Hello fellow crypto enthusiasts. I've been tracking the charts on cryptopia this past week or so watching a possible cup and handle formation forming on DFScoin. As of last night and today's price movement has started to show the beginning of a handle forming. If my analysis is correct and this pattern continues to shape into the cup and handle we can expect DFScoin to continue to consolidate for a few days before a possible breakout with huge gain potential.
A cup and handle formation is A bullish indicator and usually is a sign to buy the dip once consolidation begins when we enter the handle. The reason for the pullback or consolidation in a cup and handle formation is because short term investors sell shares that they had bought when the formation begun when that price is hit again thus starting the formation of the handle. This can look like the beginning of a sell off but is not. If you look at the screenshot provided you can see the spike in price mid month that starts the cup and handle formation. This spike in volume and price is followed by a steady decline causing some short term investors to get stuck or sell at a loss. Then, as volume slowly picks up and we hit an upward trend those caught investors are waiting to just get out without taking a loss. Once that price is hit they sell causing the consolidation that starts the handle formation (usually a big mistake at this point in a cup and handle). After they sell and consolidation is over the cup and handle comes to completion and price breaks out due to the fact that the weak hands have sold and upward momentum resumes.
The cup and handle formation is a serious sign of a bullish market. This is a well known indicator in investment and one that investors look for before investing. In a small cap new project like DFS with a solid team, project and real world use case that has not broken out yet it is also a huge investment opportunity. At this stage in the project the market is just waiting for a single whale to jump in with buy support and when that happens we will never see these prices again. All of this is on the verge of huge development announcements coming very soon. Dfscoin is poised to make the jump from a small cap great project to the entry point of the larger cap coins! 2018 will be a great year for this amazing coin and project as DFScoin grows out of its infancy and into the contender it has worked to be.
I am not a professional trader and this is not trading advice. Please do your own research before investing or seek out a professional for help and as always never invest more than you can afford to in any investment. This is original content that I did my own research on. The thoughts and opinions of this article are based on my research and knowledge of this coin and the markets. I've been doing this for some time but still have a very long way to go. Please be responsible and do the work before you invest.
Thank you for the read :)