The chart created on July 16, 2025, shows that CoW Protocol (COW/USD) has formed a rising wedge pattern. A rising wedge is a bearish chart formation where price moves upward between two converging trendlines, signaling a potential sharp drop once support breaks.
In this case, COW/ USDT has climbed to $0.4376, near the wedge’s upper resistance line, while volume remains relatively flat. The 50-day EMA is at $0.3366, which the price has recently flipped into support.
If the wedge breaks downward, the chart points to a possible 90% drop from the current level. That would bring the price down toward the blue horizontal line near $0.0436.
This level aligns with previous support from October 2024 and high-volume nodes, making it a logical downside target. The large green arrow on the chart confirms that the bearish scenario is being considered.
Until the wedge breaks decisively, the pattern remains active. A confirmed close below the lower red trendline will likely trigger the drop. The price structure and historical chart data support this potential move.
In summary, the rising wedge pattern suggests CoW Protocol could fall from $0.4376 to $0.0436—a projected 90% decline—if breakdown follows.
CoW Protocol MACD Chart Analysis
ACD indicator for CoW Protocol on a daily timeframe. The MACD line (blue) just crossed above the signal line (orange), and the histogram bars turned green. This crossover happened near 0.0151, signaling bullish momentum in the short term.
MACD (Moving Average Convergence Divergence) tracks the difference between two exponential moving averages (typically 12 and 26 periods). A crossover above the signal line often signals increasing buying strength. In this chart, the MACD line is at 0.0219, the signal line is at 0.0068, and both are rising.
The histogram, which shows the gap between the two lines, is also expanding upward. This confirms that momentum is building. However, momentum alone doesn’t override chart structure. The earlier wedge pattern still suggests possible reversal.
So, while the MACD currently shows short-term bullish strength, it may be temporary if the rising wedge pattern breaks down. Keep watching volume and price structure for confirmation.
CoW Protocol RSI Chart Analysis
The chart displays the Relative Strength Index (RSI) for CoW Protocol on the daily timeframe. As of July 16, 2025, the RSI is at 72.60, which is above the 70 threshold, marking overbought territory.
RSI is a momentum indicator that measures recent price changes to evaluate whether an asset is overbought or oversold. Values above 70 typically suggest overbought conditions, which often precede a price pullback or reversal.
The RSI climbed sharply from below 30 in late June to over 70 in mid-July. This rise reflects strong buying pressure. However, when RSI crosses above 70, it often signals that the asset may be overheated.
The yellow average line (currently at 56.31) shows a steep upward slope, confirming strong momentum. Still, the current RSI level warns that the recent rally may be exhausting, especially when paired with the rising wedge pattern seen in the price chart.
In summary, RSI confirms that CoW Protocol is overbought. If momentum weakens, this could trigger a reversal—in line with the rising wedge breakdown scenario.
