$RLC is expected to follow one of three scenarios:
Scenario A: A strong short squeeze (continues to rise)
If the bulls are exceptionally strong, the price will not undergo a deep pullback. Instead, it will consolidate strongly within the 0.9475โ1.10 range, waiting for the MA7 to catch up. Once the consolidation ends, a high-volume breakout above 1.4887 would signal the start of a new major upward wave.
Scenario B: A technical pullback (closing the gap)
Since the price has moved too far away from the MA7, major players may take advantage of the momentum to drive it down and conduct a deep shakeout. The price may pull back to 0.9475, or even test support at 0.6912 (MA7). In a strong trend, this is a normal โchance to get in.โ
Scenario C: Major players cashing out (an A-shaped plunge)
If sustained high-volume bearish candles appear at the highs and the price breaks straight below the intraday low of 0.8236, that would indicate the 90-degree rally was a bull trap orchestrated by major players to sell off their holdings, and the market will sink back into the lows.
Scenario A: A strong short squeeze (continues to rise)
If the bulls are exceptionally strong, the price will not undergo a deep pullback. Instead, it will consolidate strongly within the 0.9475โ1.10 range, waiting for the MA7 to catch up. Once the consolidation ends, a high-volume breakout above 1.4887 would signal the start of a new major upward wave.
Scenario B: A technical pullback (closing the gap)
Since the price has moved too far away from the MA7, major players may take advantage of the momentum to drive it down and conduct a deep shakeout. The price may pull back to 0.9475, or even test support at 0.6912 (MA7). In a strong trend, this is a normal โchance to get in.โ
Scenario C: Major players cashing out (an A-shaped plunge)
If sustained high-volume bearish candles appear at the highs and the price breaks straight below the intraday low of 0.8236, that would indicate the 90-degree rally was a bull trap orchestrated by major players to sell off their holdings, and the market will sink back into the lows.