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Recently, the virtual money market has shown a complex trading situation. From the daily chart analysis, we can observe that the price movement presents an alternating pattern of rises and falls. Although the Bollinger Bands remain in an upward opening state, it is worth noting that the peaks of the continuous rebounds are showing a gradual downward trend. This phenomenon is usually regarded as a 'divergence' signal in Technical Analysis, suggesting that a market reversal may be imminent.
Further in-depth analysis of the technical indicators reveals that the red histogram of the MACD indicator is gradually shortening, indicating that the market's upward momentum is weakening. At the same time, the KDJ indicator has shown a downward crossover, and the RSI indicator has also begun to turn downward. The combined performance of these technical indicators seems to warn investors: there is insufficient upward momentum in the market in the short term, and there is a significant possibility of a rebound.
When we shift our perspective to the shorter-term hourly candlestick chart, the situation becomes even more striking. The price movement has formed a wedge rebound pattern, which has now run to the convergence end of the consolidation range. This technical formation, similar to a triangle consolidation, is often considered a precursor to a significant change in the market. If the price breaks below the support level, we may see a new wave of downward movement unfold.
Overall, the current market situation requires investors to remain highly vigilant. Although there may still be small fluctuations in the short term, looking at various technical indicators, the market seems to be brewing an important directional choice. Whether holding or trading, investors need to closely monitor market trends and manage risks effectively.