Karrat (KARRATUSD) has been in a prolonged downtrend, recently reaching a potential inflection point.
The daily chart suggests completing a corrective wave structure, while the 1-hour chart highlights a short-term bullish setup.
With price action near key Fibonacci levels and an oversold RSI, a potential trend reversal may be on the horizon.
KARRAT Price Analysis
The daily chart of KARRAT showcases a prolonged corrective phase. The price has steadily declined since its peak on Dec. 4, at $0.76, marking the completion of wave X.
A clear Elliott Wave structure can be observed, labeling a corrective WXY pattern, where the final Y wave seems to have completed near the $0.11 level.
The price recently tested key Fibonacci levels, particularly the 0.618 extension, which aligns with historical reversal points.
Additionally, the daily Relative Strength Index (RSI) has formed a bullish divergence, indicating that selling pressure is weakening. A similar RSI setup led to a strong rally in the past.
Another critical observation is that the descending trendline acts as resistance, connecting lower highs from previous months.
A breakout above the trendline and the nearby 0.5 Fibonacci extension at $0.24 would confirm bullish momentum.
However, failure to hold above $0.11 could lead to further downside, testing deeper support zones.
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A closer look at the price structure shows that the ongoing decline has weakened, with decreasing bearish volume. This signals potential exhaustion from sellers, increasing the likelihood of a breakout attempt.
If a reversal occurs, momentum confirmation will be key, and the price must sustain above $0.15 to continue toward $0.24.
KARRAT Price Prediction
The 1-hour KARRAT chart clarifies short-term movements and highlights a potential breakout structure.
The price action appears to have formed an ABCDE correction, with wave (e) of the corrective phase nearing completion.
Karrat could see a sharp rebound toward the $0.20-$0.25 range if this structure plays out as expected.
The immediate resistance lies at $0.15; breaking above this level would confirm bullish momentum, potentially sending the price to test the $0.25 region, where the larger descending trendline converges.
Conversely, failure to hold the current support zone at $0.11 could result in an extended corrective phase. The next critical support lies at $0.05, a key Fibonacci confluence area.
A breakout above $0.15 would likely trigger a wave of short covering, fueling additional upside movement.
The Fibonacci extension of the potential rebound suggests $0.30 as an extended target if bullish momentum persists.
However, a rejection at $0.15 could lead to a retest of support levels before another attempt at reversal.
Key Levels to Watch
- Immediate Resistance: $0.15 (descending trendline resistance).
- Key Resistance: $0.24 (0.5 Fibonacci retracement).
- Major Resistance: $0.51 (0.236 Fibonacci retracement).
- Immediate Support: $0.11 (local low & 0.618 Fib).
- Critical Support: $0.05 (deeper corrective target).
- Breakout Target: $0.25+ if the descending trendline breaks.
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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