DigitalNote Double Bottom Formation

On the 15th of June, DigitalNote has formed a double bottom at $0.005 level. This is 161.8% Fibonacci retracement applied to the corrective wave up after the uptrend trendline breakout.

The Fibonacci support has been rejected twice cleanly after which price went up and broke above the 50 moving Average and the descending channel at the same time. On the corrective wave down, XDN/BTC has rejected the upper trendline of the descending channel and went up once again.

It seems that the 50 Moving Average is currently acing as the support and from this point onward XDN might start moving higher. The strong resistance is seen at 38.2% Fibonacci retracement that is $0.01 strong psychological level. Break above it could confirm the bullish trend formation for the long term, while rejection is likely to result in a strong wave down.

On a downside, break and close below the $0.005 support will invalidate short or long term bullish scenario and could send price to new lows.

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