$SPONGE (SPONGE/USD) Still Maintains the Possibility for a Bullish Price Breakout

As forces of demand match up with forces of supply in the $SPONGE market, the price stabilizes into a ranging trend. The horizontal price channel continues to narrow as the tug-of-war continues. On May 13, the bull market got rejected at $0.0006515, and it fell below the 20-day moving average. However, the market still maintains the horizontal channel range.

Key Levels

• Resistance: $0.0007855, $0.0010, and $0.00117
• Support: $0.00040, $0.00035, and $0.00032

Sponge (SPONGE/USD) Price Analysis: The Indicators’ Point of View

The market’s volatility began to cool off on May 12, in the fifth four-hour trading session. After the appearance of a plus sign doji candlestick pattern, a brief bullish trend followed. On May 13, the Sponge bull market made major advancements, claiming new supply levels within the already narrowing price channel. Despite the bullish move, the indicators refused to correlate with market activity. This is a bearish divergence. The bulls are becoming exhausted, and the bears do not seem strong enough to go beyond the key support level.

SPONGE/USD Short-Term Outlook: 1-Hour Chart

The bear market has hit a brick wall at the $0.0004461 price level. It is expected that the bull market will bounce back from here, as this support level seems strong enough to repel bearish advances. Currently, the SPONGEUSD market is in the sell zone, and traders should be ready to take a long position as soon as the volume of trade begins to increase. This is because it is very likely that the market will not go beyond the support level.

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— $SPONGE (@spongeoneth) May 16, 2023

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