After Retracing, WRX Aims to Continue Its Upward Move

The breakout from the descending resistance line was outlined by well-known trader @LSDinmycoffee, who stated that WRX has broken out and is likely to continue moving upwards. He posted a setup which is shown in the image below, with an entry of 1,500 satoshis and a target of 2,150 sats.

On May 26, the WRX price broke out from a descending resistance line that it had been following since March 10, after failing to do so the first four times it tried. However, after breaking out, WRX created a bearish engulfing candlestick and decreased to validate the resistance line. The closest support and resistance levels are found at 1,400 and 1,850 satoshis, respectively.

Future Movement

In the short-term, the price is following an ascending support line and has just bounced above this line for the fifth time. Furthermore, the price is trading at a confluence of support levels, in the form of the horizontal 1,450 satoshi support level and the 200-hour moving average (MA). Therefore, it is likely that the price will continue to increase at the rate predicted by the ascending support line. If, however, it were to break down, it would likely drop to the 1,400 satoshi level outlined in the previous section.

If the price begins to move upwards as expected, it is likely to face strong resistance between 1,610 and 1,640 satoshis, the 0.5-0.168 fib levels of the entire move, and at the previous high of 1,750. Therefore, in order for the price to reach the 2,150 target given in the tweet, it has to begin a significant upward movement that takes it above the prior high. While this is not impossible, there is considerable resistance for the price to clear before it can reach this level, so the presented setup is not a short-term play.