Here’s Why Fast-Recovering ANKR Coin Is Under Correction Threat; Back To $0.04?

The Ankr coin price witnessed a steady recovery since the beginning of 2023. This parabolic growth also revealed the formation of a rounding bottom pattern indicating the buyers could carry a prolonged rally. Moreover, the ANKR price experienced a significant boost in the last two days as they announced their partnership with Microsoft. However, this bull run backed by long-wick rejection candles indicates the sellers are defending higher prices and could trigger a minor pullback.

Key Points: 

•  The rounding bottom pattern is characterized by a gradual downtrend, followed by a period of stabilization where the price range narrows, and then a steady uptrend.
• The increasing selling pressure $0.0576 resistance indicates an upcoming downfall
• The intraday trading volume in ANKR is $962 Million, indicating a 25% gain.

Source- Tradingview

Over the last six months, the ANKR coin price shows the formation of a rounding bottom pattern. The rounding bottom pattern is formed by a series of price movements that create a U-shaped curve, with the bottom of the curve being rounded, hence the name “rounding bottom.”

As of now, the ANKR is currently in the third phase of the mentioned pattern which is the gradual recovery. However, this sustained rally witnessed a sudden boost as ANKR announced its partnership with Microsoft. This collaboration aims to provide blockchain node hosting services for enterprises.

In the last two days, the coin price rose 50% where it currently trades at the $0.048 mark. However, the higher price rejection attached to the two daily candles indicates the exhausted bullish momentum. 

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Thus, such a sudden recovery could be unhealthy for a sustained rally and therefore a minor correction is expected to stabilize the excessive buying. During a possible correction, the coin holders should mark the $0.04 and $0.0328 support as they can replenish the bullish momentum. 

Anyhow, the formation of a rounding bottom pattern keeps the overall trend bullish and may bolster a price to $0.0576 neckline resistance.

Technical Indicator

RSI:  The daily RSI slope surged into the overbought region accentuating that the trader has overdone the buying activity and thus, a correction phase is needed. 

EMAs:  the 20-day EMA slope has proven to offer strong support during the occasional pullbacks. 

ANKR Coin Price Intraday Levels-

• Spot rate: $0.048
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.057 and $0.066
• Support level- $0.04 and $0.032