Yes, it works but not everytime. And as liquidity is very low, volatility is very high. There is also big manipulations with pump and dump groups and fake news to hype a coin.
Correct, and that is what confuses people, they think that technical analysis should work 100% of the time and that is simply impossible, technical analysis is a way to improve your predictions about what the market is going to do and a way to try to profit from those movements, that is all, even if you can only predict how the market is going to move 60% of the time that is good enough to get profits.