Market Analysis with Rekt Capital – July 24, 2024

In today’s edition, the following cryptocurrencies will be analysed & discussed:

• Optimism (OP)
• Ondo (ONDO)
• Vanar Chain (VANRY)
• TrueFi (TRU)
• Bonk (BONK)

Optimism — OP/USDT

In recent weeks, we spoke about OP’s downside deviation below the Macro Higher Low (purple):

Then, last week, we touched upon how OP needed to position itself above the black $1.91 level to reclaim said level as new support to enable trend continuation to the upside:

And here’s today’s update:

OP has successfully retested the Macro Higher Low (purple) as support and the monthly candle has even flipped green for the first time this July.

OP is on the cusp of potentially positioning itself above the black level for a reclaim via the green path.

On the Monthly timeframe, this positioning isn’t very visible but on the Weekly it is clear that OP is trying to already reclaim said level:

OP Weekly Closed above the black level, breaking that level as resistance and now price is pulling back to retest it as new support.

The retest is in progress and a successful retest would enable upside via the green path.

In fact, a previous retest attempt at similar price levels occurred in early 2023 (green circle).

Back then, a Weekly Close above the black level followed by a downside wicking retest attempt enabled upside to as high as the orange area of resistance in the $3 region.

Could history repeat with a similar move upon successful retest here?

Ondo — ONDO/USDT

Last week, we spoke about an expectation for ONDO to dip as part of established a new range at highs:

Since then, ONDO has indeed began its pullback via the green path:

ONDO rejected from the black resistance which is a confluent rejection point with the red multi month downtrend.

It’s possible ONDO will continue its dip into the light blue level for a key retest attempt.

Successful retest there and ONDO would reverse to the upside to revisit the black highs from which it rejected from earlier this week via the green path.

Vanar Chain — VANRY/USDT

Here’s my chart on VANRY from a few weeks ago:

Here’s this week’s chart on VANRY:

And here’s this week’s chart on VANRY:

VANRY managed to retest the orange level as support on lower timeframes to enable a sizeable breakout rally to the upside.

But now, VANRY is dipping to potentially retest this orange level as support on the higher timeframes, specifically this Weekly timeframe.

A successful retest would be bullish.

In fact, VANRY is going for a similar retest to what we saw earlier this year:

Earlier this year, VANRY performed a green circled retest; that is, Weekly Closing above the orange $0.12 level, retesting it as support in the following week, before launching into an uptrend.

Could history repeat once again?

VANRY is going for that retest attempt right now and a successful one would enable upside to at least the light blue level above.

TrueFi — TRU/USDT

After briefly losing the blue Higher Low as support in recent weeks, TRU managed to break back above this trendline last week and now this week it is pulling back in an effort to solidify it as support.

Of course, some downside deviation is occurring and this may be part of a volatile retest here.

But a Weekly Close above the Higher Low would render the retest as successful and the Higher Low would be successfully reclaimed as support.

Bonk — BONK/USDT

In recent weeks, we’ve been talking about the importance of a Weekly Close above the black level to position of a retest of that same level as new support:

After all, previous red circled retests have shown that a Weekly Close on its own is not enough to enable further upside for BONK.

A subsequent successful retest is essential to enabling upside.

And that retest is now in progress:

BONK, like on all previous occasions in the red circles, has once again Weekly Closed above the black level.

Now BONK is pulling back in an effort to turn the black level into new support.

Successful retest here would be historic as BONK has never managed to perform a successful retest at these levels.

Hold here and the green path would be followed to revisit the blue diagonal resistance where a major breakout attempt would occur (Weekly Close above the blue diagonal would be essential but that is a story for another day).

Thank you for reading.

Rekt Capital