#ASTER
This failed breakout is already quite painful for the bulls. If, after the failed breakout, the price continues to fall below the lower end of the range, previously trapped positions will start to exert downward pressure, which is why this 35-day consolidation is so crucial. The longer the consolidation period, the more valuable the upper and lower boundaries of the range become. Once a breakout occurs in one direction, the price generally won't remain trapped for long.
We previously discussed that once the price breaks below $0.68, it's likely to test the $0.60 level. The price is now slowly approaching this range, so this is no longer a simple bearish expectation, but rather a trend that has already materialized.
The most crucial question now is: can the price reclaim the previous lower end of the range and pull it back into the original trading range? If not, this is still a classic false breakout, and the price action is largely as we expected, with a high probability of completing this downward move and ultimately testing $0.60.