$ARPA completed a powerful upward impulse, reaching a peak of $0.01454, and entered the phase of expected correction. After signs of extreme overbought conditions (RSI above 90), the price retraced to the critical zone of $0.01344 – $0.01377, where the EMA(7) moving average is currently acting as dynamic support. This is a healthy development, allowing the market to 'digest' the rise and form a potential point for continuation of movement.
Key to the bullish scenario is holding the current level and forming a higher low relative to the previous base. Successful consolidation above $0.01344 may become a platform for a new attempt to storm resistance at $0.01454. On the other hand, losing this support and breaking below $0.01300 may increase pressure and lead to a deeper correction to $0.01250.
Entry (long on a bounce from support): $0.01350.
Targets:
TP1 — $0.01410
TP2 — $0.01454 (retest of the maximum)
Stop-loss: $0.01295 (break and close below $0.01300, which will indicate weakness and a change in short-term momentum).
Impulse movements are not checked on the rise, but on the ability to hold the conquered levels after a pullback. The depth and shape of the correction determine the strength of the trend.
Which signal do you consider more important for confirming strength at support — the formation of a bullish candlestick reversal pattern or a noticeable increase in buying volumes at this level?