COTI Gets Snapped Back to Reality After Posting 200% February Gains

COTI (COTI) Price Highlights

• At one point, the COTI price increased by more than 200% in February.
• It created a massive bearish engulfing candlestick on Feb 26.
• There is support at 220 and 155 satoshis.
• There is resistance at 320 and 650 satoshis.

Full-time trader @CryptoMichNL outlined a COTI/BTC price chart showing that the price has increased by 170% since the beginning of the upward move. If we break out above the current resistance level, he gives a target of 450 satoshis for the ensuing movement.

$COTI #COTI

Massive 170% move here on $COTI.

Broke through the 250 satoshis level and now facing the next resistance level.

Breaking through this level and we're facing 450 satoshis next.

Some retracements and retests of support wouldn't be bad, but definitely a strong one. pic.twitter.com/JskDFmuwM7

— Michaël van de Poppe (@CryptoMichNL) February 25, 2020

Lift Off

Looking at the daily chart, we can see that until Feb 25, the COTI price had increased by more than 200% since the upward move began on Feb 9. This increase culminated with a high of 390 satoshis on Feb 25. While the price initially broke out above 320 satoshis, it failed to increase above this area and created a long upper-wick instead, closing below it. On Feb 26, the COTI price created a massive bearish engulfing candlestick and fell the 220 satoshi support area. A glance at the weekly chart reveals that the price has yet to confirm that it is in a bullish trend. The RSI was strongly rejected at the 50-line and the 320 satoshi resistance area.

Ascending Support Line

In the short-term, the price has been following an ascending support line since Feb 17. However, the price broke down from this line on Febr 26. Afterward, it quickly decreased and reached the 220 satoshi support area. The bearish engulfing candlestick of Feb 25 transpired with extremely significant volume. Therefore, while a bounce at the current support level is expected, the price might not be done correcting and could still continue downwards. The next support area is found at 155 satoshis, bolstered by the upcoming bullish cross between the 50 and 200-day moving averages (MA).  This is also the previous breakdown level, so it is a very suitable spot for the initiation of a reversal. To conclude, the COTI price has been rapidly increasing since Feb 9. The surge ended on Feb 25, when the price created a bearish engulfing candlestick and decreased by roughly 40% in a day. While the price has bounced at the 220 satoshi support area, it is expected to decrease to possibly reach 155 satoshis.