Yello Paradisers! Are you really going to ignore this early reversal signal after such a prolonged downtrend on #ENA, or are you positioning before the crowd wakes up?
๐#ENA has been in a clear downtrend, but we are now starting to see the first meaningful shift in momentum. A key early signal comes from the RSI, where a bullish divergence has formed, indicating that selling pressure is weakening even though the price has not fully reacted yet.
๐At the same time, price action developed a falling wedge structure during this extended decline. As you should know, falling wedges can act as reversal patterns, but only when they appear after a prolonged downtrend, which is exactly what we are seeing here. This significantly increases the probability of a meaningful move to the upside, especially when combined with momentum signals.
๐We already saw a strong breakout from this wedge, followed by a sharp, impulsive move upward. Right now, #ENA is in a pullback phase, but this pullback appears corrective rather than impulsive. The lack of strong bearish momentum suggests that this is likely a healthy retracement before another potential leg up.
๐Minor support sits around 0.0940, while the major support is located near 0.0700, which is also the low of the previous bullish swing. As long as the price holds above this major support, the bullish structure remains valid. On the upside, the minor resistance is around 0.1300, which aligns with the recent swing high, while the major resistance sits near 0.1900.
๐It is important to understand that we do not trade every falling wedge pattern blindly, as many of them fail. However, when this type of structure appears after a prolonged downtrend and aligns with supporting indicators like RSI divergence, it creates a much stronger setup with a favorable risk-to-reward profile.
๐The key question now is whether the market will confirm continuation with another push upward or trap impatient traders during this consolidation phase. This is where discipline and patience become critical.
Paradisers, strive for consistency, not quick profits. Treat the market as a businessman, not as a gambler.
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