Up or down? The range is tightening.

During the 2022 downtrend, the bearish pennant briefly resolved to the upside, with price breaking above the pattern. This breakout, however, was short lived, and the overall mcap subsequently collapsed afterwards.

From a fundamental standpoint, I don’t see strong parallels to the current environment. Technically, however, a bearish pennant is once again forming within the ongoing downtrend. The price action range continues to compress, signaling that a significant move is likely imminent.

On the other hand, many altcoin setups have formed clean falling wedges, which leads me to lean bullish in the short term. I’m therefore positioning for an upside pump out of this pennant, similar to what we saw in 2022.

That said, I’m keeping risk tightly managed, moving stop losses to break even relatively quickly or placing them around 5% below entry in case of a breakdown.

As a small side note: @CantonNetwork $CC is in a clear uptrend, ever since NASDAQ became active as a validator. Overall, this is definitely something worth watching closely as future developments unfold.

#TOTAL