It's All In The Name
We have an excellent write-up HERE explaining the ins and outs of FBs recent move to META so there is no reason to recover that here.
Instead, the focus is really about Fundamental Analysis and Market Moving Events and how they play a role for the Trader like you and me. There was a time when Blockchain was a buzzword on Wall St and just adding “Blockchain” to your name is referencing Crypto was enough to 5X your company. Long Island Ice Tea changed its name to Long Blockchain and BOOM – 500% in the Pre-Market. The Crypto Company said it was going to open a trading floor and they shot up over 2200% to $642 – They are now trading at $2.05 – Which is a loss of 99.68%.
And so here we go again… Facebook, refusing to go away, plays the game in a last-ditch effort to pivot away from all the news recently (knowingly targeting and hurting little kids just to turn a buck) and try to push themselves into relevancy in the future. Will it work for Facebook? Honestly, who cares but did it make some plays for Traders? Yes, it sure did.
So then the question has been answered – Facebook is actually still relevant after all these years.
The NEW ETH ATH?
The NFT craze has ETH smashing ceilings just as its Big Brother Bitcoin did last week. ETH was not going to sit on the sidelines and allow Bitcoin all the glory… no sir. ETH hit an All-New High yesterday when it reached $4461 for the very first time. Welcome to Price Discovery, my friends.
The Price Action for ETH is pretty Bullish. The structure that it has formed can be analyzed in a few different ways. The least popular would be an AB=CD or just simply an ABCD pattern. For this to work, we measure the move from the beginning of the local trend to the High before the pullback. Then we use that measurement at the low of the pullback and expect another “leg” from the asset. So, about $4971. We also have an area of potential resistance near $5100. So somewhere in that region we would be looking for resistance. Whether it is enough to come all the way back to the previous ATH or not remains to be seen.
The more common pattern is the Bull Flag. This is formed when the asset has a near-vertical rise (the pole) and then consolidation in the form of a pullback that can slightly resemble about a 45-degree downward trajectory. When the asset breaks out (top-side) of the consolidation zone then we can say we have a Bull Flag. The measured move here is the same as the ABCD but the location at which we start the Take Profit is at the Breakout point – not the bottom of the pullback. This gets us a potential target of $5578. We already have a level of potential resistance at $5488 – so once again we have an area or a region that we like for some Profit Taking.
We are trading on the Weekend – so, be careful as weekend liquidity – anything is possible.
Alts Worth Watching
Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications.
In this virtual world, users purchase plots of land that they can later navigate, build upon and monetize.
Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players.
Inspired by popular games like Pokémon and Tamagotchi, Axie Infinity allows players to collect, breed, raise, battle and trade token-based creatures known as Axies.
Launched in 2011 by Pixowl, The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community.
MANA is breaking every level of insight and is currently up over 100% in the last 24-hours. $2.47 has already been hit and can potentially be an area of reloading or consolidation. The real reload is way back down at $1.54 but it remains to be seen if this will let up at all. $3.77 looks to be the next area to take profits if it can continue the upward move.
AXS has a lot going on as far as Price Action is concerned. When AXIE gets going, it goes pretty hard and it has been respecting TA quite nicely. A Bull Pennant would lead to a potential $245.30 Take Profit area while just the Symmetrical Triangle would lead to a potential $179.00 target. If we don’t see much resistance around $178 – $180 then the door to $245 should be wide open.
SAND went right through its ATH and even smashed through our first Take Profit at $1.37. There is a lot of selling at the moment and we can see the top of the trend acting at the first level of Support. If that breaks then we have plenty of support down below. If the consolidation is brief then we look to continue on the course and head to $2.13 as the next area of potential resistance.