There's no denying many alts have posted sizeable gains over the last week.
But the fact remains that the appropriate conditions have yet to align for us to flip the book long.
Perhaps the best example of this is the recent move in Gala $GALA.
From the lows to the highs, Gala saw a 230% gain in the space of two weeks. It is, by far, the strongest name in this entire market rally.
But despite this 3x move, we're still below this broken support. Chances are, bears will step in here, and Gala will see some rightful consolidation.
This is just not a chart we want to buy on any level.
Harmony $ONE looks similar in that its retesting this breakdown level from the underside.
Ask yourself, "Is this a chart I want to buy?"
Put aside any preconceived ideas about the environment or Harmony's "fundamentals."
Does a chart like this inspire confidence?
Or patience?
We'd certainly argue the latter.
The same can be said for something like Elrond $EGLD. It recently broke down from this multi-month rectangle pattern and is in the process of retesting all this broken support.
Nothing to do here.
And even a market leader like Binance $BNB is still messy.
While it hasn't made new lows -- like the other names we've shown today -- it's still in the middle of a long-term trading range.
Sure, much of the weakness we've seen in December could ultimately become a false move.
Many coins could push through all this overhead supply, put in major failed breakdowns, and rip from here.
That's a possibility.
But it's not the bet we want to make, at least not right now.
These things still need to shape up before we want to be buying with some level of conviction.
Keep waiting for the perfect setups; they always come.
Thanks for reading, and please let us know if you have any questions.
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