In spite of API3 Token´s recent uptrend in the last couple of weeks (as in the whole crypto market), I´m still not convinced that the overall trend to the downside is over.
This is my current Elliott Wave count in the 4HR Timeframe:
This is what we have:
a. Valid leading diagonal for wave I
b. Valid impulsive wave III, in 5 sub-waves
c. Valid zigzag (blue ABC) correction for wave IV
d. Wave IV in the 50-61.8% pullback zone, and doesn´t overlap Wave I (pink invalidation line)
Therefore, at this moment, there is no reason for me to change the bearish bias.
Note that wave III was limited to 161.8% extension of waves I-II. This increases the possibility that wave V will be extended, giving targets in the .70 zone.
My trading strategy
The conservative stance would be to wait for the blue support and trendline to be broken. But I usually like more aggressive entries, even if I get more stop losses (as long as they´re small).
I will enter a trade now with a position size that gives me 0.5R stop loss at 1.40. After further price action and a possible break of support, I will probably add to the position.