The cryptocurrency market, including Aurora, has faced a recent pullback, leaving investors wondering: is AURORA still a bullish bet? In this comprehensive analysis, JB will delve into the technical indicators, wave structure, and long-term perspective to provide a clear picture of AURORA’s current stance and future potential.
A Market-Wide Pullback and AURORA’s Resilience:
While the overall market dipped, AURORA displayed commendable resilience on the daily timeframe on Gate.io. Notably, it bounced off the crucial 200 EMA (Exponential Moving Average), hinting at potential upward momentum.
A Potential Retracement on the Horizon:
The daily stochastic indicator suggests oversold conditions, aligning with similar signals on lower timeframes. Additionally, the price is currently testing the 50 EMA and SMA (Simple Moving Average), further indicating a possible retracement. Previous discussions highlighted a potential retracement target of 31.3 to 24.2 cents during wave four.
Recent Price Movement and Skepticism:
Following a descent from the 50% retracement area, AURORA currently sits at 19.6 cents. While some maintain optimism about reaching the fifth wave target of 378 cents, there’s also skepticism surrounding its feasibility.
Analyzing the Wave Structure:
Two possible wave structures are currently being considered: a potential WX YX Zed structure or an ABC structure. It’s crucial to remember that technical invalidation occurs at 14.9 cents, emphasizing the need for caution given the deep retracement.
Bullish Signs Amidst the Pullback:
Despite the retracement concerns, there are encouraging indicators to consider. AURORA bounced from the 78.6 Fibonacci level and the 200 daily EMA, showcasing its ability to find support. Interestingly, bullish divergence is evident on the RSI (Relative Strength Index), suggesting potential underlying buying pressure. Additionally, the Cheeky Cipher indicator presents a bullish Cipher signal, offering another point of optimism.
Concerns and Cautions:
However, we must acknowledge the downsides too. Negative money flow and choppy VWAP (Volume-Weighted Average Price) point towards a lack of a clear trend reversal. Therefore, exercising caution is essential even with the presence of bullish divergence. Potential retracement levels to keep an eye on during a potential move upwards are 37.6 and 62.01 cents.
Examining the weekly timeframe reveals the ongoing technical structure. While a test to the upside isn’t ruled out, a cautious approach is recommended.
Risk Management is Key:
Regardless of your bullish or bearish leanings, remember the importance of responsible trading. Always incorporate tight stop-loss orders and prioritize trade safety.
Final Thoughts and Closing Notes:
While the immediate bullish expectations have been slightly tempered, AURORA still presents a range of potential between 37 and 62 cents. The possibility of a larger move towards 93 to $142 persists, but exercising caution is paramount. To stay informed about future updates and analysis, don’t forget to subscribe, like, and comment on this video.
Trading safely and making informed decisions are essential to navigate the ever-evolving cryptocurrency market. We wish you a successful and profitable trading journey!