Last instrument in today’s technical part of the market journey is the crypto named Populous. It was previously mentioned here on the 16th of August, when the price was aiming the long-term down trendline and had appetite for more – the horizontal resistance slightly above the 5 USD. This was our view back then:
“Even with the today’s rise, it is still too early to claim the bullish victory. As long as the price stays below the yellow area, the sentiment in the mid-term is still negative. „
The price managed to reached the resistances pretty fast. Buyers made a huge effort to break the 5 USD but failed miserably with holding that price as a closest support. That was a signal for the false breakout pattern and I think You already know what false breakouts are doing. If you do not know, one more reminder: they very often trigger a movement in the opposite direction. Interestingly, this crypto respects round levels. First a bounce from the 5 USD, than a breakout of the 3 USD (orange) and then, establishing the 2 USD (green) as a crucial long-term resistance. This resistance was technically proven yesterday as the daily chart is shaped like a sweet shooting star. This alone can be considered as a sell signal and we combine it with the whole trend, we almost get a certain short here.