Technical analysis by elfabiiani about Symbol VLX: Buy recommendation (6/4/2025)

Technical Analysis – Velas (VLX/USD) + TRADE PLANDate of Analysis: June 4, 2025Timeframe: 4-hour (H4)Current Price: $0.0023541Chart Pattern: Falling Wedge (Bullish Reversal Potential)Pattern Description: The price is consolidating within a falling wedge formation — historically a bullish reversal pattern.Breakout Potential: If price breaks upward through the wedge resistance, strong momentum could follow.Support Zone: $0.0020 – $0.0022 (Weekly low zone, strong historical support)Resistance Zones:Immediate: $0.00339 – $0.00397Secondary: $0.00444 – $0.00513Major: $0.00707 (high target zone)Indicators OverviewVMC Cipher_B (Momentum Oscillator):Momentum is deep in the red, approaching oversold territory.Green dots signal potential bullish divergence forming (trend exhaustion).RSI (14):Current: 13.30 → Oversold, significant bounce potential.Last low this deep preceded a strong rally — suggesting a possible bottom.Arty Money Flow Index (MFI):Shows low volume inflows → not ideal, but can turn quickly on bullish reversal.Stochastic RSI:Crossing upwards from deep oversold (<15).Bullish crossover forming → early sign of reversal.Two Scenarios – Trading PlanScenario A: Bullish Breakout (Primary Scenario)Entry: On confirmed breakout of falling wedge → above $0.0026 with volumeTargets:TP1: $0.00339TP2: $0.00444TP3: $0.00513TP4 (Moon Target): $0.00707Stop Loss: $0.00215 (below wedge bottom)Risk/Reward: 1:3 to 1:5 depending on TP levelConfidence: 4/5 (RSI + Wedge support)Scenario B: Bearish Continuation (Fails to Break Out)Trigger: Break below $0.00215 with volumeAction:Short-term panic sell possible down to $0.0015 – $0.0012Watch for capitulation wick and rapid V-recoveryRe-entry Opportunity: If oversold bounces with large green engulfing or V-bottom reversal🧠 Strategic Notes:Velas is at a make-or-break point. Fundamentally, adoption and development updates from the team (esp. Alex & Co.) will heavily influence investor confidence.DYOR Reminder: This is a highly speculative coin in an oversold state. Best used for swing trades or speculative long-term entries with tight risk control.