SPELL has been grinding lower for months inside a clear descending structure, but zooming into the current price action, the move is no longer aggressive. The range is tightening. Volatility is compressing. That compression is forming a classic falling wedge on the daily timeframe.
Both trendlines are sloping down, but the key detail is this:
The lower boundary is not accelerating down. Sellers are pushing price lower, yet each leg down is weaker than the previous one. That’s usually how exhaustion begins.
Right now price is sitting very close to the wedge support zone around 0.0001630 – 0.0001610. This is a reaction area. If buyers defend it, we could see a relief move start building from here.
What would shift momentum?
First, reclaiming the minor horizontal resistance around 0.0002210.
Then a break above the upper wedge trendline.
If that happens with volume expansion, the structure flips from compression to expansion.
Potential upside reaction areas:
• 0.0002210 short term resistance
• 0.0002600 mid range level
• 0.0003220 larger breakout target
On the other side, if price loses 0.0001610 with strong continuation candles, then the wedge fails and downside continuation becomes more likely.
So this is not random movement. This is compression inside a falling wedge at a key structural zone. The breakout direction from here will likely define the next multi-week move.
$SPELL #SpellToken #spell