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Analyzing recent cryptocurrency market movements, a breakout of a falling wedge trend triggered a short-lived rally. However, challenges arose when the price encountered resistance at a critical long-term support and resistance zone. Notably, a bearish divergence occurred, marked by price reaching higher highs while the GAS Stochastic Oscillator formed lower highs.
This led to a decisive break below the $0.30 support level. However, an intriguing development appeared on the daily chart: a bullish divergence. The price has been trending lower while the Stochastic oscillator has been posting higher lows, hinting at a potential reversal.
Zooming out on the 7-day chart, a significant support and resistance zone from $0.40 to $0.51 caught the eye. Here, a hidden bullish divergence has materialized, indicating price's reluctance to set new lows despite the oscillator forming lower lows.
Given this dynamic, traders could aim for a price target for the falling wedge breakout between $4 and $5. The 7-day chart's hidden bullish divergence and daily bullish divergence present interesting signals for a potential move higher. However, careful monitoring of noted support and resistance zones remains crucial to an overall trading strategy.
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