The analysis focuses on NIO, currently at $5.01, trending within a descending channel. Previous descending triangles resulted in breakouts with significant price increases of around 100%. However, NIO has faced tough fundamentals, dealing with lawsuits and revenue issues. The target price to watch is $6.076, which is a significant resistance level. If selling continues, it could potentially reach $3.383. The analysis watches the volume, because a recovery requires reclaiming the $5.10 and $5.375 levels to establish a new base. A failure to hold above $4.461 could lead to a full retracement. The IWM overall market is currently looking good with IWM at $251.82, it made a beautiful recovery on the daily but NIO hasn't reflected that. Price has to get back above the $5.10 range so the analysis will continue to see some potential in NIO.