Has SHDW given us a gift?

Hypothesis

Long-term play here.

Now, we are going to capitalise on a new market view and psychological viewpoint of SHDW's newfound floor at the dollar mark.

Technical analysis

SHDW began soaring into the new range from 0.0700 back in October and remained there until recently, printing a $2 high.

Incredible growth in a short period and one of the best-performing assets. From a TA perspective, we can read and try to position ourselves as market participants and tell the story.

What we like to see to validate further upside from a range-bound market after an expansion like this is looser signs of resistance than support, which we see. Basically, resistance to the range is disrespected and broken, with more will than the support of the range.

Also, in a bull market, we want to see the range hold for a long period. See this as the market getting used to the range. We did actually break out of this range on SHDW and print $2. Still, after it was catalysed, we found the floor again around a key psychological level for any asset. This is especially valid for SHDW because it is where we have placed the buy box to capitalise on a move to the all-time high and beyond.

Play for traders

Scenario 1: Very simple. We're stacking orders or buying at the market in and around the price point now, and we would even still consider buying SHDW with conviction down until the red level of $0.7000. It's unlikely, and we think $1 is the floor here.

Risk and reward

This would become unattractive and a shift in sentiment if we were to break lower and shift structure around the $0.7000 mark.

Take profit

TP 1: $2.6000

Play for investors

It's exactly the same stance as the play for traders, really. Look to accumulate and use the analysis to support your conviction about backing this—a very generous pullback for a solid asset.

Cryptonary's take

Sometimes, TA can be used differently. You can read the psychology of the participants within that asset and try to front-run and position yourself ahead of the curve, thinking differently and capitalising on the bigger picture.