The ratio got grounded to the dust after the fork to its lowest ever at 0.25. The recent rally was an indication of how undervalued it was.
After a move like that, 1) its normal to have bounce to 0.5-0.618 Fib level of the entire drop 2) ABC waves are normal in a recovery during an downtrend. A & B appear to be done 3) Bull flag can be seen with a target flag pole at the Fib levels
BUT,
1) 50 Day EMA (Orange) is major resistance and then 100 Day EMA as well 2) In September, a similar setup failed, where price crossed 50 Day EMA (green arrow), fell short of 100 Day EMA (red arrow) and then price got rejected again at the 50 Day EMA (red arrow). This can happen again 3) In ABC, the C can fall short of A or turn around at same level or cross it
A tight Stop Loss just below 0.04 will help to play with good Risk:Reward ratio.
Take Care. All the best.
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The 50 Day MA (orange) has offered support in the last 4 days. This is a positive sign
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Hope Stop Loss was used for this play. It is still valid even after this drop and now appears to be a falling wedge (bullish)