- OCEAN printed a bullish divergence in its weekly RSI.
- AAVE formed a double bottom formation.
- XMR reclaimed the horizontal resistance region of $127.
The trio has recorded a massive decrease since hitting their respective ATHs. Nevertheless, all three digital assets have bullish-looking patterns. Their enormous declines have catalyzed a significant risk-reward ratio if bullish reversals emerge.
OCEAN Forms Bullish RSI
Ocean Protocol (OCEAN) has seen its price fall since reaching the $1.94 all-time high in April last year (2021). The alternative coin printed a lower peak in November 2021 before dipping below a descending resistance.
OCEAN’s price kick-started its current upside after hitting the $0.115 low on November 22. A stimulating development emerges from the weekly Relative Strength Index, which formed a bullish divergence and concluded a swing failure setup afterward.
That presents a bullish signal that precedes optimistic trend reversals. Nevertheless, the OCEAN price could not break from the resistance level and formed an upper wick (long). While writing this analysis, the crypto traded beneath the resistance area and the $0.155 mark.
Reclaiming $0.155 and overcoming the plunging resistance would mean a substantial bullish action as it would authorize bullish reversals. Such a wave can see OCEAN soaring towards the resistance near $0.40. Nonetheless, closing under $0.115 might trigger new lows for the alternative coin.
AAVE Prints Double Bottom
AAVE price has recorded downsides since hitting the $115.80 high on August 11. The crypto printed a lower peak on November 5 before intensifying its decreasing pace. Meanwhile, the alt touched the $50.20 low on November 22 before rebounding and forming an optimistic hammer candle.
That authorized the horizontal support region at $54. Nonetheless, a failed upside move saw AAVE price returning to the same area on December 20, forming a double bottom setup. However, the asset is yet to confirm the pattern and isn’t in combination with the Relative Strength Index’s bullish divergence.
An uptick past the $66.50 mark would authorize the double-bottom setup before triggering upside movements toward $95. However, attaining a daily closing beneath the support area of $54 would catalyze another yearly low for the crypto.
Monero Builds Hope for Early Cryptos
Monero is among the oldest cryptos, joining the cryptocurrency industry in 2014. XMR has its price hovering within a downward parallel channel. These channels usually comprise corrective moves. Meanwhile, players can anticipate eventual breakouts from them.
The alt seemingly concluded an A-B-C formation, with waves A: C having a 1:1 ratio. The rebound following wave C low-cemented the channel’s foothold and regained the horizontal area of $126.50 – the 61.8% FIB retracement support mark.
Meantime, the alt is working to overpower the channel’s resistance level. Success might accelerate upside action toward $200. Nonetheless, falling beneath $125 would cancel this bullish pattern.