Band Protocol - Short Term Outlook, Price Targets for Correction
/BAND Struggles to Find Solid Base
BAND continues printing a consolidation pattern after rebounding from the bottom we saw in early November. The current price is trading just below the POC (point of control), which is a weak stance under the circumstances we see in the chart. Overall, Band Protocol has shown weakness while BTC rallies higher.
With certain alts continuing on to higher levels while BAND shows sideways consolidation, I think it is setting up for another drop once the alts enter a short term bearish phase. The stochastic is currently very weak, showing downward momentum that could take us into the “oversold” zone below the 20% line.
If this momentum continues, I’m looking to buy at “strike zone 1” where we see a peak node on the volume cluster. The best scenario would be a hard bounce on the 1.618 fib circle boundary and recovery towards the POC price. But if the alt market corrects hard, BAND could return to the price at volume cluster 2, which is a previous popular trading point.
The worst case scenario would be a drop down to volume cluster 3, which would bring us to “strike zone 2”. This would be my best guess for the lowest price before the alt season run. But with BAND showing as much weakness as it has, this is a dangerous proposition as far as an investment being made for the sole purpose of trading for a profit in the near future.
The OBV shows a “mild recovery”, but overall we still see distribution going on as it is very likely that large institutional investors who probably bought in the 0.30 range are still taking profits. Until this is over, it will be very hard for BAND to make another strong move upwards and establish a new base of support without the seemingly endless dumping.
Carlton Flowers
The Crypto Pro
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NOT FINANCIAL ADVICE - Entertainment purposes only. Seek a qualified investment advisor before making any decisions on purchasing cryptocurrencies. The crypto market is very volatile, and trading can be dangerous and detrimental to your financial situation. Proceed with caution.