CHILLGUY Price Down 25% but Holds Key Support, Setting Stage for Possible Breakout
CHILLGUY price reached an all-time high of $0.70 and made a descent to ascending support which is currently being tested.
Key Takeaways
- CHILLGUY reached $0.70, completing the Elliott Wave impulse.
- Critical support at $0.518 aligns with the 0.786 Fibonacci retracement level.
- A breakout or a bounce from the current structure will hint at the next trend direction.
Just A Chill Guy (CHILLGUY) has shown intriguing price action recently, navigating a completed Elliott Wave impulse pattern followed by a corrective phase.
After reaching $0.70, the price entered consolidation and is now testing critical support levels within an ascending channel, hinting at a possible bounce or breakout ahead.
CHILLGUY Price Analysis
The hourly chart of CHILLGUY/USDT illustrates a clear Elliott Wave formation, showcasing a completed five-wave impulse pattern.
After climbing to $0.54 at its first wave (v) high on Nov. 21, the price entered a corrective ABC structure, leading to a low of $0.21 on Nov. 23.
This correction reflected a potential consolidation phase before the next impulsive move.
A new uptrend began forming an ascending channel, reaching its peak of nearly $0.7. A downward move proceeded, and the price is currently testing the ascending support at $0.51.
The Relative Strength Index (RSI) indicates a gradual decline, suggesting weakened momentum but not an oversold condition, leaving room for further downside or consolidation.
The current price action forms a parallel channel, indicating a possible accumulation zone if the price holds above $0.518. A decisive breakout from the channel could validate the next trend direction.
Key Observations
- Five-Wave Completion: CHILLGUY reached $0.70, marking the end of wave (v).
- Support at $0.518: The 0.786 Fibonacci retracement is a key support level.
- Channel Formation: The price consolidates in a parallel channel, signaling indecision.
CHILLGUY Price Prediction
The 15-minute chart for CHILLGUY/USDT highlights a developing Elliott Wave structure, with a clear five-wave impulse peaking at $0.70.
Following this high, the price entered a corrective ABC structure of a lower degree, with wave (c) currently testing the support of a descending triangle.
This consolidation phase aligns with key Fibonacci retracement levels, suggesting the potential for either a continuation of the bullish trend or a deeper retracement.
The RSI slightly recovered from oversold conditions, indicating that momentum is stabilizing. A breakout from the current descending triangle likely signals the resumption of the uptrend, targeting higher Fibonacci extensions.
However, failure to hold above the immediate support could result in a retest of lower Fibonacci levels, particularly near $0.453.
Key Levels to Watch
Support Levels:
- $0.518 (0.786 Fibonacci): Immediate support is critical for maintaining a bullish structure.
- $0.453 (0.618 Fibonacci): Secondary support in case of a deeper correction.
- $0.407 (0.5 Fibonacci): A key zone for accumulation if bearish momentum increases.
Resistance Levels:
- $0.600 (Wave (v) high): Critical level for confirming a breakout above the triangle.
- $0.706 (1.272 Fibonacci extension): Initial target for the next impulsive wave.
- $0.839 (1.618 Fibonacci extension): Longer-term resistance and potential target for wave (iii).
A bounce is expected either way, but its next significant resistance of $0.60 will provide further insight into the next primary scenario.
The descending triangle could only be the first sub-wave of the large corrective structure, where the expected rise will be a lower high followed by another descending move.
But if the price rises above $0,60 after it bounces from ascending support, a new all-time high of $0.84 will look more likely.
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