Somnia price prediction – Should traders await a breakout after THIS consolidation pattern?
Key Takeaways
The 4-hour timeframe revealed a bullish market construction. Somnia swing merchants and buyers can look to purchase the token above the $1 psychological resistance, with a good worth assist additionally highlighted within the $1.1 space.
Somnia [SOMI], on the time of writing, was up 3.75% in 24 hours, with its every day buying and selling quantity having declined by practically 10%. This, on the again of a triangle sample formation over the previous few days. Can the bulls maintain the uptrend going, or will the altcoin see one other dip to $1?
Somnia merchants have cause to be bullish, however watch out for a short-term worth dip
Supply: SOMI/USDT on TradingView
On the 4-hour chart, the swing construction of Somnia was nonetheless bullish regardless of the retracement beneath $1. Nonetheless, the worth motion of the previous two days highlighted SOMI falling in the direction of the truthful worth hole (white field) at $1.06-$1.22.
Now, the $1.2 area has been defended as assist, however the Superior Oscillator confirmed that the bullish momentum could also be slowing down. Promoting stress didn’t appear to be overwhelming although. Actually, the OBV has been trending greater swiftly following the worth breakout previous the $1.07 short-term resistance.
There was some promoting stress over the previous 24 hours, however this was minor in comparison with the shopping for since 10 September. And but, it might dictate short-term sentiment and drive a worth transfer within the subsequent 24-48 hours.
Supply: SOMI/USDT on TradingView
Zooming in on the 1-hour chart, Somnia gave the impression to be forming a descending triangle pattern. This sample is mostly a bearish sample, because it often comes throughout a downtrend. On uncommon events, such because the one SOMI offered, this triangle sample also can kind after a bullish transfer.
The promoting quantity over the previous 24 hours was mirrored on the OBV, which broke the short-term latest lows and signaled that sellers had the higher hand. If this continues, Somnia bulls is likely to be compelled to retreat to the $1-$1.1 demand zone.
Lastly, the liquidation map confirmed that the lengthy liquidations as much as $1.2 had been barely bigger than the brief liquidations overhead. This meant {that a} worth dip to $1.2 or barely decrease could also be a risk quickly.
The $1.2-level was additionally the bottom of the triangle sample. Therefore, merchants can look ahead to a retest of $1.15-$1.2 to look to purchase the token. Invalidation can be a worth drop beneath the $1-mark.
Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
