The timeframes are aligned against the countertrend, and the chart for $VELVET is starting to show signals. On the daily chart, price remains capped by the EMA50 and EMA200. The 1-hour chart has also failed to reclaim the moving averages, so the bearish alignment remains intact. The 15-minute ADX reading is above 30, indicating that sellers are still in control; the rebound looks more like a correction than a reversal. With this structure, I’m looking for trend continuation, not trying to call a bottom.

The cluster of moving averages overhead forms resistance. If price rebounds into that area without volume support, it could be where bears take control again. Once there’s room to the downside, first watch to see whether price can hold near the previous low. If it can’t, liquidity could be sought further down. If you’re thinking of buying against the trend, ask yourself: if price hasn’t reclaimed the moving averages, what makes you think the decline is over?

🔴 Trade direction: Short
📍 Entry range: 0.0695556 – 0.0699178
🛑 Stop loss: 0.0741174
🎯 Take profit 1: 0.0664511
🎯 Take profit 2: 0.0642608
🎯 Take profit 3: 0.0609752

Take in the vastness of mountains and seas; observe the market’s finer details.
Trade alongside Uncle Xiong and witness the ebb and flow of gains and losses.

#VELVET

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