Key Takeaways
- Testing strong horizontal and Fibonacci support.
- Descending resistance trendline limiting upside potential.
- Breakout could target 0.5 Fibonacci retracement at $265.
Gnosis (GNO) tests a critical support zone at the 0.786 Fibonacci retracement level after a prolonged corrective phase.
A descending trendline has acted as resistance, limiting bullish breakouts.
GNO is approaching the end of a corrective structure with a potential for reversal.
GNO Price Analysis
The daily chart of GNO reveals a prolonged downtrend after peaking at $445 on Mar. 11. 2024. The correction has formed a symmetrical triangle, with the price now testing the lower boundary of a triangle formation.
The 0.786 Fibonacci retracement level at approximately $160 has been a significant historical support zone, previously leading to strong rebounds.
The daily chart’s Relative Strength Index (RSI) shows oversold conditions, indicating that the selling momentum may be exhausted.
The presence of a confluence zone, formed by both the horizontal support area and the lower triangle boundary, makes this a crucial level for potential trend reversal.
If the price confirms support at this level, a breakout from the descending resistance line could lead to a recovery toward $222 (0.618 Fibonacci retracement) and $265 (0.5 Fibonacci retracement).
A failure to hold above $160 could invalidate the bullish scenario, opening the door for further downside toward the $85 level (1.0 Fibonacci retracement), marking the last major support from the previous cycle.
GNO Price Prediction
The 4-hour chart provides further clarity on GNO’s potential short-term movements.
The price action suggests that GNO is forming a complex ABCDE corrective pattern, with wave wave (C) nearing completion.
A breakout from this structure could lead to a strong, impulsive move upward.
The immediate resistance to watch is at $222 (0.618 Fibonacci retracement). A successful breakout above this level could push GNO toward the wave (D) target at around $240.
If bullish momentum sustains, the next major resistance is $265 (0.5 Fibonacci retracement), a historically relevant price level.
Alternatively, a rejection could lead to further consolidation within the triangle, with the price potentially revisiting the $160-$150 region.
If selling pressure increases, GNO could break below the structure, with the next major support sitting at $85.
The RSI on the 4-hour chart is recovering from oversold conditions, which may signal the beginning of a bullish move.
Confirmation of volume expansion alongside a breakout would strengthen the case for a short-term uptrend.
Key Levels to Watch
- Immediate Resistance: $222 (0.618 Fibonacci retracement).
- Key Resistance: $240 (descending trendline resistance).
- Major Resistance: $265 (0.5 Fibonacci retracement).
- Immediate Support: $159 (0.786 Fibonacci retracement).
- Critical Support: $85 (1.0 Fibonacci retracement).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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