This material cannot be considered financial advice, it is just the author's imagination.
Timeframe 1 day, Binance exchange.
This project can be said to be unique in its kind, both from the side of blockchain technology, from the side of an internally built economy, and from the side of resistance to centralization.
Immediately after the listing of HIVE on exchanges, the price decreased for 6 months (marked with a red rectangle) - incomprehensible prospects for the project, the coins of which were obtained for free as a result of a hard fork (HIVE coins were received by all holders of STEEM coins, with the exception of Justin Sun and several validators who participated in centralization (usurpation of power) on the STEEM blockchain).
After, pumping by 800%, distribution, already promising coins)
Dump from peak at 84%, then pump at 1900+%, continuous distribution.
You need to understand that such waves on the chart are made by a very specific group of people, respectively, the manipulator is present on the instrument and it works very efficiently, the project was lucky. Such waves cannot be made by ordinary users who write texts in the ecosystem, with all their desire, there will not be enough resources...
Up to this point it was all foreplay, now the meat.
The chart clearly shows 2 large patterns:
- Head and shoulders - marked with a white dotted line, downside potential from the neck line (red support) - 93%.
- Symmetrical triangle - red support and red resistance line, upside potential from breaking through the resistance of the figure, it is also a global downtrend of about 1900%.
With a probability of 80-90%, the quote will fall to the uptrend, after which it will be broken down and become resistance for a while. Strong squeezes are very likely (liquidity wasted at the start of working out the head and shoulders pattern, a very obvious figure), I noted the squeeze zone on the chart. There were 40-60% dumps before previous strong moves. Dumps after breaking the neck are possible to previous strong horizontal levels, marked in red and purple on the chart.
Working out the head and shoulders figure is completely extremely unlikely, there the target is in the region of 2-3 cents, if it goes there, it will not come back with a high degree of probability, but shock therapy with breaking through the neckline is very likely with strong squeezes (knocking out random passengers + ransom huge liquidity in a short period of time), then return to the ascending channel, breaking through the downtrend and going to the targets of the symmetrical triangle.
I would not count on taking 1900% of breaking through the resistance of the triangle, taking into account the decrease, the percentage will be many times higher. If you enter the instrument, then it is better to fix up to significant psychological levels of $5 and $10 per coin, I marked the horizontal levels with white lines near the psychological round numbers, you can do it earlier, or rather. I marked the final goals for both figures with turquoise horizontal ones, the probability of their working out in both directions is low.
When working with this tool, a rational approach to risk management is extremely important. For purchases, it is advisable to use limit orders in the squeeze zone. If it fulfills the head and shoulders target, the tool is unlikely to return even to the current values, at least in the foreseeable future.
HIVE - how the project is developing very dynamically, this is a cool technology, cheap to use and this is the future, but if the coin costs 2 cents or less (and there is always such a possibility), this will not affect the use of the project in any way. In case of crypto-madness in the market, this project will be downloaded with a very high probability, to understand this, it is enough to look at the chart on a large timeframe and understand the trends in the waves.
Everything that is said in this article cannot be considered financial advice!