crow with knife meme coin technical analysis from experienced FX trader – 06/08/2024

Morning, appologies for my haitus during the huge global market crash I was off enjoying myself and unable to get to a computer…blissfuly unaware of what was happening!

So what happened? – The US Stock market took a huge hit becase of 2 main drivers

1. Japan raised it’s interest rate – why this matters : Japan Yen has historically been used as an avenue to purchase us stocks and the rising of interest rates made this less appealing so money left. This is why you will often see the Yen and SNP moving together inversely
2. US NFP was about 50% lower than expected – why this matters : NFP is typically the type of news that makes the market crazy for a day if that but doesn’t change the fundamentals..however what happened with the low score was that an indicator that suggests we may be in recession was triggered. It doesn’t mean the US is in one but it is a technical indicator of a recession..

This meant money on a panic left the stocks…this leads to a crash of the stocks which seemingly counter intuitively crashes everything…as institutions sell whatever they have to release capital to cover their positions. This is why when I looked at the charts I wasn’t phased becaue not only were stock makets and crypto crashing but so was gold.

This mirrored the covid collapse of 2020 if you want a recent example. The situation was most likely a blip where all that excess money is eventually going to go into something..if not the stock market then commodities and gold and crypto would likely benefit.

3) US fed may now be forced to do a heavier interest rate reduction which will avert a real recession in theory but be very bullish for metals and crypto.

4) Tech stocks losing their appeal. This is more of a macro trend than anything to cause a flash crash althiough buffet selling half his apple stock would definately be a catalst

Now onto CAW – As discussed on the 1st Aug if we were to see a correction below the box I have been discussing since the 26th it would be to around the 20m cap mark

Here you have – click to view

https://preview.redd.it/hjcxd3cqh0hd1.png?width=1954&format=png&auto=webp&s=f1011f290d5e3a62775bc6c4c94f57ac8c428df2

• The peak of the pre 10x rally high
• 3rd Touch (weekly) trend line from the bottom of the chart
• 79 fib retractment from the fib we have been using in these posts
• psychological 20m

Did I expect this to be triggered? No I did not…Did I expect it to break lower? No I did not…would I have worried if it did? Yes …but it didn’t…although if it did I would have bought more had I the funds.

Price is now looking very bullish…back above the purple box of the previous zone and heading to the upper box in the timelines we anticipated. It does have some lower strengh resistance to get past first and in a fundamentally driven crisis like we saw over the weekend techicals can only get you so far.

Proposed strategy

Still cheap buy if you can. I am hoping for a break of the upper box

Latest CAW News

CRONOS ZK upgrade has been delayed until next week.

CEXs

https://crypto.com/exchange/trade/CAW_USD
https://crypto.com/exchange/trade/CAW_USDT
https://www.gate.io/trade/CAW_USDT?ref=12312805
https://www.bitmart.com/trade/en?symbol=CAW_USDT