Candles test .0004 Structure

After one heck of a bearish move, we FINALLY see price hit a bottom right above the .0003 level and begin to correct. However, to expect another big rally may be wishful thinking as the crypto market as a whole has seen a decent drop in market capitalization in the new year, especially Ripple and XLM. However, we are starting to see a squeeze at the .0004 structure, creating what seems to be a nice resistance area.

Figure 1: Candles squeezing at the .0004 level, creating a strong resistance structure

Price is stuck, candles created a channel

Eventually, price went back down to the .0003 demand zone, creating a strong support structure and eventually we see price bounce between the 2 zones - creating a channel. Traders will look to trade on the breakout when we see candles close either above or below this channel, so it is unclear whether or not we will see a bullish or bearish move.

A channel is the area between a well defined support and resistance structure where price resides until a breakout occurs.

Figure 2: Price is now bouncing in between a structural support and resistance, creating a channel.

What are your thoughts on where price will break out?