Analyzing Sovryn SOV Price Trends: A Forecast for November 2023.
Sovryn SOV offers many opportunities for those seeking financial freedom and the freedom to transact without the need for a third party and with decentralized assets. Read my previous article for more.
That being said Sovryn has been in a relentless downtrend since months ago and the bear market has been brutal for this token but that doesn't mean it will remain that way forever since it has a strong narrative and utility.
Bitcoin has broken all previous downtrends it is not yet at its all-time high which in my opinion once we pass through $68,000 we will know we are in a bull market or once we reach ATH again that will be the ultimate confirmation for a bull run. But if you wait until that time you will lose all the gains you could have possibly made.
The two dotted lines are the two previous downtrend lines. And the top according to this chart is at $68,831 which is when the bull run will be confirmed.
The blue triangle is the short-term pattern where Bitcoin could ping pong and the green triangle could end up being the mid-term pattern before any break out to the up or downside being the long-term pattern a possible defined break out to the upside to test again the ATH. As long as Bitcoin remains above $25,000 those 3 patterns will remain valid and in positive price-wise sentiment.
So as long as Bitcoin remains in a positive bull trend and doesn't fall beyond $25,000 Sovryn SOV could see some gains too.
When it comes to Sovryn you must observe both charts the USD and the BTC charts for a better understanding of the market since SOV is not yet an established altcoin and the price history is very limited, not to mention it has been in a bear downtrend for at least two years if not more. So you must do your research and this article is not trading advice in any way or form. Note that a whale could come at any moment and dump or dump SOV without warning and without having to respect any technical analysis.
Dollars.
If Sovryn is about to start a bull trend just like Bitcoin is doing price should not come below $0.234 because that is the middle of the Gaussian channel and the SOV community would want to paint another multiday green phase just like it did a few months ago. Going below the GC could mean that the next support in the blue line could not be enough and provably a sustained decline is at hand to either test the uptrend blue line. If the blue line can't hold the price in case a whale shows up it will mean we will test the ATL but at that point, you would want to wait because you will need to study that new data.
As long as Bitcoin remains bullish and above $25,000 Sovryn should hold the blue line as the ultimate support otherwise it will be breaking structure not just seeking to touch the low at $0.159.
In the weekly and daily too we got out of the triangle we were in before and probably tried to test the bottom of the Gaussian Channel which if broken could be very bullish in the long term. The resistance in the weekly should be the lower part of the GC, but in general, the support is located in the same price range.
Bitcoin.
In the monthly chart, October painted the first green candle in six months but it had very low volume, which means sellers are either running out of tokens to sell or the sellers are just not motivated enough to sell at the current price action. We would need more green candles in the following months if we are about to enter a bull market for Sovryn too like other altcoins are having. Next month will be the first time SOV against rBTC price action gets out of the previous triangle pattern bullish as long as it doesn't go down and tries to make a lower low.
The 10 and 15 MA in the monthly chart just made a golden cross it is not the more popular MA but I will take what I can when it comes to SOV. Those two lines have not crossed in the monthly chart at all even if you go back to the start of the data from Sovryn DEX charts. The October candle painted a doji candle that could indicate a market reversal if the following candles print more green candles with a higher volume.
In the one-week chart, no MA has crossed yet but they are getting close which means soon we will have one that could indicate a market reversal. This is good because it means you are still early to a possible buying opportunity or just another falling knife, your call.
In the one-day chart the important MAs have not been crossed yet those being 21, 50, and 100, I could add the 200 but that is for future reference.
In the one-day price should be able to see some support in the 823 level because that is the 21MA and it is where the previous triangle pattern was located. Going below that number could mean Sovryn is about to test the previous low and probably seeking to make a lower low.
You can't take this technical analysis seriously because whales can change the direction of the price action at any moment and also because the tokens are not well distributed among all users, not to mention that most DeFi tokens suffer from high volatility. This TA is only meant for you to have an idea of where the price could go so that you can DCA or know when in general you are DCA within a bear market or bull market.
If you like to DCA I would say the best time to do so is in the bear market so that your dollars can buy more of the other assets you wish, but also DCA makes even more sense when statistically speaking you are buying closer to the bottom than the top.
My personal opinion is that Sovryn won't go lower than the previous low against dollars at $0.159, which translates to around 600 satoshis but this prediction can only hold if Bitcoin remains above $25,000.00 and no bad news is given for Sovryn. A whale can change those numbers in a hurry I can't compete against them because they hold the actual supply.
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