Bull Flag Forms From May Lows With Breakout Potential
Connecting the May 19 and June 5 lows reveals a descending parallel channel—better known as a bull flag. This pattern typically leads to:
- Breakout above resistance
- Pullback to confirm the breakout
- Continued upward momentum
Price Targets:
- Aggressive: Measuring the flag pole from $74k to $112k suggests a 50% upside to $164k.
- Conservative: Using the May 6 flag pole implies a 20% move to $130k.
Fibonacci Extensions Highlight Key Resistance Zones
Using the 2025 Fibonacci extensions, three critical resistance levels emerge:
| Level | Price Zone | Significance |
|--------------|-----------------|-------------------------------|
| First | $109k–$111k | Initial profit-taking zone |
| Second | $121k | Mid-term resistance |
| Third | $139k | Major upside target |
These zones serve as logical exit points or markers for potential reversals.
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ETH Shows Weak Recovery While ALTs Await Confirmation
- ETH: Struggles to match BTC’s momentum despite breaking short-term resistance.
- Stablecoin Dominance: Declining (bullish for ALTs).
- BTC Dominance: Remains high, delaying ALT season.
Market Segments:
- Top 10 Coins: Bearish dominance trend.
- OTHERS: Nearing a bullish consolidation signal if daily close occurs inside the TBO Cloud.
Top Crypto ALTs: Divergent Strengths
| Coin | Current Status | Catalyst |
|-------|------------------------------|-----------------------------------|
| XRP | Inside daily TBO Cloud | Bearish macro trend persists |
| SOL | Below Cloud | Weak momentum |
| LINK | +4% rally | Mastercard partnership (short-term boost) |
| HBAR | Near bullish consolidation | Cloud breakout pending |
Volume-Driven Movers
- APT: +15% breakout, 6x daily Volume, long-term resistance breached.
- AAVE: Cloud recovery; needs to clear $309.57 to resume uptrend.
- SEI: +70% in 3 days; next target at 0.618 Fib level.
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KAIA: Long-Term Potential Despite Slowdown
- Current Trend: Losing steam with declining Volume.
Upside Targets:
- 225% Fib extension
- 480% Fib extension (optimistic scenario)
Strategy: Hold "free coins" for minimal-risk exposure.
WIF and SPX6900: Upside Watchlist
- WIF: Needs Volume to confirm breakout.
- SPX6900: Must close above 1.55 to resume uptrend.
FAQ Section
Q: What defines a bull flag pattern?
A: A descending channel after a sharp rise, signaling consolidation before continuation.
Q: How is the Fibonacci extension calculated?
A: Based on prior price swings, projecting key resistance levels (e.g., 1.618x the flag pole).
Q: When might ALTs recover?
A: When BTC Dominance declines and Stablecoin Dominance bottoms out.
Q: Is SEI’s rally sustainable?
A: High Volume suggests strength, but watch for Fib retracement levels.
Q: Should I hold KAIA long-term?
A: Only risk-free positions (“free coins”) are advisable given current Volume trends.
Disclaimer: This analysis is for informational purposes only. Conduct your own research before trading.
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