- REEF Token entered a bearish cycle after the formation of the head and shoulders pattern
- The coin is currently trading between $ 0.011 and $ 0.015
- The coin is on a bullish momentum over the past week and this could thrust the coin into the resistance zone
REEF Token is trading between $ 0.015 and $ 0.011 zone over the last couple of weeks. The coin earlier formed a head and shoulders pattern followed by a sharp bearish reversal. The coin broke the neck level of the pattern at $ 0.02 and made a steep fall to $ 0.015. The coin then consolidated between $ 0.015 and $ 0.02 for a month before breaking the $ 0.015 support zone. The coin formed support at $ 0.011 post breaking the $ 0.015 support. The coin has been largely bullish in the past week and this trend is expected to continue up to the resistance zone. The token can be kept on the watchlist and trades can be placed as and when the coin nears the crucial price levels.
REEF Token has been on downward sloping parallel channels over the last month and a half as seen on the 4-hour chart. The coin formed a triple bottom on the parallel channel before making a bullish reversal. The coin did not sustain the reversal rally, however. The coin then formed a bearish parallel channel and the coin is nearing the resistance zone of the parallel channel. The coin has able support at $ 0.011 and there is a possibility of a reversal.
Conclusion:
The token broke out of a head and shoulder pattern into a bearish rally and the coin looks to reverse the trend at the moment. The coin has formed a parallel channel on the 4-hour chart and its movement within the channel is crucial for directional changes.
Support: $ 0.011
Resistance: $ 0.015
DISCLAIMER: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish any financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.