The crypto market has experienced significant volatility, with several leading cryptocurrencies undergoing dramatic price fluctuations. Casper hasn’t been immune to this trend, witnessing a sustained decline, dropping by over 100% from April to October.
However, according to respected crypto analyst Captain Faibik, Casper may be bottoming out and ready for a rally. In a recent Twitter thread, Faibik noted that CSPR seems to have formed a falling wedge pattern on its chart. This is typically a bullish pattern that can precede a breakout.
Falling Wedge Points to Possible 40% Breakout
Faibik believes that if Casper can successfully break out of this falling wedge pattern, a significant price surge could occur in the short term. Specifically, he estimates Casper could see gains of around 40% or more if the breakout is confirmed.
Falling wedge patterns occur when the highs and lows of an asset’s price converge into a wedge shape. As the wedge narrows, volatility decreases as the asset trades within an ever-tighter range. Eventually, volume builds and the price breaks out either upward or downward.
In crypto, falling wedges usually resolve themselves upward around 65% of the time. Thus, the pattern Faibik has identified offers a bullish setup for Casper if it can push above wedge resistance.
Of course, technical analysis is not a certainty, and there are no guarantees in crypto trading. But Faibik believes the confluence of oversold conditions, positive fundamentals, and bullish chart patterns means Casper is well-positioned for upside in the coming weeks if key levels can be reclaimed.
It will be important to watch for increasing volume on a wedge breakout as well as follow-through buying to confirm the move. Crypto investors may want to keep Casper on their watchlists in case this promising setup materializes.
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