Reef (REEF) Price Breaks Out Of Important Resistance, Will A Strong Rally Follow?
The price of Reef (REEF) has broken above a long-term resistance line and reclaimed an important price level. It may continue to rise in the near future.
Long-term resistance line
The price of Reef (REEF) has been trading below a descending resistance line since reaching its yearly high at $0.004 in February 2023. The price was rejected multiple times by this resistance line, most recently on August 13th (red arrow). This caused the price to break down below the horizontal support level at $0.00142, indicating the continuation of the downtrend.
However, instead of declining significantly, the price surged from $0.0012 and broke above the resistance line on September 5th. At the same time, it also reclaimed the level at $0.00142. Both of these are bullish signals, suggesting that the downtrend may have come to an end.
The daily RSI (Relative Strength Index) has crossed above the 50 level and is trending upwards, supporting the idea of further price increases.
Therefore, the REEF price could rise to the next important resistance level at $0.0019 in the near future.
Short-term prospects
The 4-hour chart shows that the price successfully flipped the $0.00142 level into support yesterday (green arrow). This indicates a shift in sentiment from selling on rallies to buying on dips.
However, the 4-hour RSI has formed a bearish divergence (red line). This is a bearish signal, often followed by a correction.
As a result, the REEF price could retest the $0.00142 support level before continuing to rise. The nearest horizontal resistance is found at $0.0017.
Conclusion
The most likely scenario suggests that the REEF price will continue to rise in the near future. The nearest target is $0.0017, with a higher target at $0.0019.
However, the price may revisit $0.00142 before doing so.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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