Augur Doubles in Value Before Retracing Slightly, Will Another Surge Follow? [Premium Analysis]

The failure of the price to break out above the previous breakdown level is a bearish development, and despite the recent surge, we do not believe REP has begun a long-term upward trend yet. Well-known trader and investor DonAlt (@CryptoDonAlt) made an update on his previous REP price prediction. While the prediction was correct, he laments himself for not being patient enough.

$REP update:

That feeling when you're right but not patient enough. pic.twitter.com/zBYxkK2X6y

— DonAlt (@CryptoDonAlt) January 15, 2020

But, the REP price has posted significant gains over the past few days. Let’s take a deep dive into the price movement and determine how long will they continue

Augur Significant Support

Since the end of 2017, the most important price area for REP has been the ₿0.018 area. It acted as support until June 2019, when the price broke down and continued to create a new all-time low. This week’s upward move, even though very significant, has failed to sustain the prices above this area and has created a very long upper wick instead. Furthermore, the price has failed to move above the 50- and 100-week moving averages (MA), failing to even reach the latter. So, even though the REP price has increased significantly, it has yet to clear the overhead resistance in order to confirm that it has begun a new bullish long-term market cycle.

Resistance Line Breakout

The Augur price has twice broken out above a descending resistance line and initiated a very rapid upward move. The most recent move transpired on January 15, when the price reached the resistance area mentioned prior. The 100- and 200-day moving averages (MA) have made a bullish cross, possibly indicating that at least in the medium-term, the price has begun an upward trend. As long as the price stays above these MAs, we can make the assumption that it is. After the initial upward move, the Augur price retraced all the way to the 0.618 fib level before initiating the current one. If the price were to do the same this time around, it would retrace near ₿0.0142. Based on how the 100-day MA moves upward, this level is likely to coincide with the MA, further providing support to the price. Afterward, the price should make another attempt at breaking out above the ₿0.018 resistance. What is immediately observable is the lack of a trading structure or even clear resistance support areas. Therefore, due to this development and the significant volatility, we believe the prudent move would be to wait until the price does so before attempting to initiate any trades. To conclude, the REP rally seems to have lost its strength. We believe the price will retrace until it reaches ₿0.0142.