Dusk started off August hot, rallying 231% against the BTC pair but has flamed out quickly since and retraced 100% of the entire move. As this coin is newer however, it offers less historical support and resistance. It can typically move more fluidly.
In looking at the daily chart we can see that buyers are stepping in at the lows where the last rally first started. We have seen a similar setup before in some of the recently listed IEO’s on Binance that typically followed through with more bullish price action. That same pattern is starting to look like it has the possibility to repeat here.
The buy volume has started to rise after 2 days of sitting on the HTF support and looks to provide a relief rally at the very least. Dusk would need to reclaim the 1050 area which would act as the EQ (Equilibrium) of the range in order to have momentum to carry it to the HTF resistance.
On the 4hr chart reclamation of roughly the 1050 area should mean we’d see follow through towards the range high at 1262 in which there would be two possible outcomes.
A breakout would have a high probability of a new bullish cycle since the last major breakdown and old support would be recovered. Whilst a bearish retest would lead towards at the very least a retest of the EQ. A loss of that and a quick retest of the all time lows in succession would likely result in new lows altogether as we have seen on most instruments this year across the board.
The next few days for Dusk should give us the answers on if this is the start of what looks like the beginning stages of possible reversal. A loss of the lows would lead to price discovery and see the current lows as a possible formidable resistance.
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Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.
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