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Tron-based meme coin Sundog (SUNDOG) has surged by 8% within the past 24 hours, breaking above a falling wedge pattern it had traded within since September.
Then again, BeInCrypto’s analysis of the meme coin’s technical setup indicates that the new rally can be a false breakout. This assessment dives into the reasons at the back of it and outlines key signals for SUNDOG holders to watch closely.
SUNDOG’s Surge May Cause a Bull Trap
An assessment of the SUNDOG/USD one-day chart has revealed that the meme coin broke above the upper line of its falling wedge at some stage in Thursday’s intraday trading session. This pattern is fashioned when an asset’s label strikes between two descending pattern lines, with the upper line acting as resistance and the lower line as strengthen.
A breakout above the wedge’s upper trendline is a bullish pass. It suggests buyers are gaining energy over sellers and hints at a sustained label increase. Then again, a nearer scrutinize at some of SUNDOG’s momentum indicators suggests that this rally may be a false breakout, potentially developing a bull trap.
A bull trap happens when an asset’s label briefly breaks above a key resistance level which may usually signify a certain shift in pattern. Then again, instead of constant the uptrend, the value falls again, ‘trapping” those that bought in on the bullish signal.
The setup of SUNDOG’s Great Vogue Line is a notable indicator of this potential bull trap. At press time, the crimson line of the indicator rests above SUNDOG’s label.
The Great Vogue indicator tracks the overall route and energy of an asset’s label pattern. It appears as a line on the value chart that changes shade according to the pattern’s route: inexperienced for an uptrend and crimson for a downtrend.
When the Great Vogue line appears under the asset’s label, it indicates an uptrend, suggesting bullish momentum may persist. On the several hand, when the Great Vogue line turns crimson and appears above an asset’s label, bearish strain is solid.
Additionally, the negative readings of SUNDOG’s Balance of Energy (BoP) verify the chance of a label reversal within the near term. As of this writing, the meme coin’s BoP stands at -0.82 despite its label uptick.
This indicator measures the energy of buyers versus sellers within the market. A negative BoP suggests sellers are on top of things and attempting to push the asset’s label downward.
SUNDOG Value Prediction: If Retest Fails…
A blended reading of SUNDOG’s Great Vogue and BoP indicators suggests that its breakout above the upper line of the falling wedge may occasion a bull trap when the retest attempt of the resistance line fails as a consequence of solid bearish sentiments within the market.
At press time, SUNDOG trades at $0.13. A reversal of its uptrend as a consequence of strengthening bearish strain may locate its label tumble to $0.09, where strengthen lies. Then again, if the uptrend persists, SUNDOG’s label may rally toward $0.20.
Disclaimer
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