This is why ANKR coin with fast recovery is under correction. Back to $0.04?

Ankr coin price has shown a steady recovery since the beginning of 2023. This parabolic development also revealed the formation of a rounding pattern which suggests that buyers could stage a prolonged rally. Additionally, ANKR’s price has seen a significant spike in the past couple of days as they announced their partnership with Microsoft. However, this bull run supported by long-wick rejection candles shows that sellers are defending higher prices and could trigger a small pullback.

Basic points:

• The Rounding Down pattern is characterized by a gradual downtrend, followed by a stabilization period where the price range narrows, and then a steady uptrend.
• The increasing selling pressure resistance at $0.0576 indicates an upcoming decline
• Intraday trading volume on ANKR is $962 million, indicating a gain of 25%.

Source- Tradingview

Over the past six months, ANKR coin price shows the formation of a rounding 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 rounding out, hence the name “rounding bottom”.

Currently, ANKR is in the third phase of the aforementioned pattern which is the gradual recovery. However, this sustained rally got a sudden boost as ANKR announced its partnership with Microsoft. This partnership aims to provide blockchain node hosting services for businesses.

In the last two days, the price of the coin has increased by 50% where it is currently trading at the $0.048 mark. However, the higher price rejection associated with the two daily candles indicates exhausted bullish momentum.

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Thus, such a sudden recovery could be unhealthy for a sustained rally and thus a minor correction is expected to stabilize the overbought market. During a potential correction, coin holders should note the $0.04 and $0.0328 support as they can replenish the upside momentum.

In any case, the formation of a rounded pattern at the bottom keeps the overall trend up and can strengthen a price at $0.0576 neckline resistance.

Technical Indicator

RSI: The daily slope of the RSI has jumped into the overbought territory, highlighting that the trader has overbought and therefore, a correction phase is required.

EMA: the 20-day EMA slope has been shown to provide strong support during occasional pullbacks.

ANKR Coin Intraday Price Levels-

• Spot rate: $0.048
• Trend: Upward
• Volatility: Moderate
• Resistance level – $0.057 and $0.066
• Support level – $0.04 and $0.032