Exhaustive Technical Analysis for Asset Entities Inc. (ASST)

Step 1: Data Overview and Initial Observations

• Current Price: $4.12 (2025-07-25 close)
• Recent Range: $4.01 (low 07/25) – $5.13 (high 07/23)
• Volume: Recent sessions range 1.8M–3M, well below the historic spikes (~90M+ peri-July 7).
• Historical Volatility: Explosive move upwards in early May (from ~$0.60 to >$10), followed by sharp retracements and ongoing high volatility.

Step 2: Trend and Pattern Analysis

• Long-Term Trend:
  • March–May: Sideways, low volume, consolidation under $1.
  • May–Early July: Hyper-parabolic rally, culminating with a top at $13.42 (May 22), ensuing rapid mean reversion.
  • July: Volatility remains elevated but candles show pronounced lower highs and lower lows (a series of bearish intermediate structures).
• Support & Resistance:
  • Immediate Resistance: $4.99–$5.13 (recent highs of July 23–24)
  • Major Resistance: $6.00, $7.10, $8.10 (areas of consolidation and breakdown in prior weeks)
  • Current Support: $4.01 (July 25 low), $3.75–$3.90 (June 30–July 1 close)
  • Major Support: $3.65 (July 1 low), psychological round number at $4.00
• Patterns:
  • Double/Triple Top Structure on lower timeframes: Price failed to break and hold above $5.00 despite multiple attempts (July 23–24), followed by sell pressure.
  • Descending Triangle: July's price action sets lower highs ($4.99 → $4.83 → $4.39) with horizontal support between $4.00–$4.10, a typically bearish continuation pattern after the breakdown from $7.13 on July 8.

Step 3: Technical Indicators

• Moving Averages (EMA/SMA):
  • Short-term (10/20/50 day): In absence of explicit calculation, the price has clearly broken below where these averages would be after the July 7–8 spike. The cluster at $4.50–$5.10 likely forms a resistance zone of overhead supply.
• Relative Strength Index (RSI):
  • Price sold off sharply from $7.13 (July 8) to $4.12 (July 25). Such an extended decline, followed by small bounces, typically implies RSI is trending below 40 (bearish momentum), not yet oversold (<30).
• MACD:
  • Given protracted lower closes and smaller rally attempts, histogram would be expanding bearish, with no crossover in sight.
• Bollinger Bands:
  • Price hugged the lower band throughout July, with compression and then expansion again as the $4.00–$5.00 range broke.
• Average True Range (ATR):
  • Remains elevated post-explosion. Recent daily moves of $0.30–$0.80 indicate the asset is still very volatile and prone to strong intraday reversals.

Step 4: Volume and Order Flow

• Volume Decline Analysis:
  • Post-July 7 parabolic candle (volume >90M), volume has trended down as price made lower highs and failed to bounce sharply.
  • This classic volume/price relationship suggests a lack of new buying interest and liquidity drying up, making the asset vulnerable to further drops.

Step 5: Multi-Strategy Analysis

• Trend Following:
  • Downtrend is intact. Each rally has been sold into, and failure to reclaim resistance levels augurs further weakness.
• Momentum Trading:
  • No positive momentum detected. Even on high-volume bounces (July 23), price failed to follow through and was immediately sold.
• Mean Reversion:
  • Although price action is steep, there are no strong reversal signals or signs of exhaustion. The bearish momentum hasn't been relieved by a significant short-covering rally.
• Breakout/Breakdown:
  • The break below $4.40 support (July 24–25) triggered more selling, realigning risk lower toward support at $4.00 and below. The repeated attempts and failures to reclaim $4.50–$5.00 indicate the path of least resistance is down.
• Candlestick Analysis:
  • Multiple long upper-wick candles in last week (July 23–25) demonstrate persistent overhead supply and inability to sustain intraday gains.

Step 6: Sentiment & News Reflection

• No major news (implied by price-only analysis), so price movement is technical-driven. The recent parabolic surge and crash mirrors speculative blow-off cycle, typical of post-pump-and-dump scenarios.
• Current sentiment: Risk-off due to lack of rebound and continued fresh lows.

Step 7: Price Prediction for Next 24 Hours

• Immediate downside target: $3.75–$3.90 (congestion zone from 6/30–7/1) should be tested.
• If $3.75 breaks, next support seen at $3.65–$3.70 (July 1 low).
• Upside risk capped at $4.39–$4.45. Any rallies will likely be sold into until $4.50 is confidently reclaimed.
• Volatility high; swift moves expected, but directional bias down.

Step 8: Conclusion & Trade Plan

• Edge is on the short side, targeting further drift down to $3.80–$3.75 support, setting stops above $4.45.

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Summary Decision: Sell (Short)

• Open Price (Optimal Entry): $4.12 (current price)
• Take Profit (Ideal Close): $3.80 (above major support, just before possible bounce zone)

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Rationale: All examined indicators—trend, momentum, volume, candlestick structure, and breakdown logic—converge on a bearish continuation towards $3.80. No meaningful reversal signal present; rallies are capped by aggressive selling pressure, and technical damage is not yet repaired.