🔍 General Technical Context:
Prior Trend: Upward (strong rally from around 3,150 USDT).
Current Structure: After breaking out of the ascending channel, there was a strong decline, but is currently rebounding upward – it looks like a test of prior support as resistance.
📈 Key Horizontal Levels (Support/Resistance):
Resistance:
3,794 USDT – strong resistance resulting from the prior high (green line).
3,943 USDT – high of the ascending channel.
Support:
3,504 USDT – prior support, now potentially acting as resistance (red line).
3,383 USDT – July support.
3,132 USDT – strong base support, potential correction low.
📉 Technical Patterns:
Broken Upward Channel (orange lines): A clear downward breakout suggests a weakening of the previous trend.
Downward Trendline (purple): The current price is approaching it – a test and reaction (bounce or breakout) may occur.
📊 Stochastic RSI (oscillator at the bottom):
The indicator is entering the overbought zone (>80).
This may indicate an impending slowdown or correction, especially if the price encounters resistance at the purple downward trendline.
🔮 Scenarios:
✅ Bullish (if the breakout is upward):
A breakout of the purple trendline and resistance at 3,794 USDT could signal further gains towards 3,943 USDT or higher.
Confirmation could come from a retest of the purple line as support.
❌ Bearish (if resistance rejected):
Rejection from the trendline or the 3,794 USDT zone = possible correction to 3,504 or 3,383 USDT.
Break of 3,383 = potential decline to the 3,132–3,150 USDT zone.
🧭 Conclusion:
The market has regained strength from the local low but is at a potentially strong resistance zone.
Stochastic RSI overbought + near resistance = high risk of a near-term correction.
The key will be price performance within the purple trendline and 3,794 USDT.
Prior Trend: Upward (strong rally from around 3,150 USDT).
Current Structure: After breaking out of the ascending channel, there was a strong decline, but is currently rebounding upward – it looks like a test of prior support as resistance.
📈 Key Horizontal Levels (Support/Resistance):
Resistance:
3,794 USDT – strong resistance resulting from the prior high (green line).
3,943 USDT – high of the ascending channel.
Support:
3,504 USDT – prior support, now potentially acting as resistance (red line).
3,383 USDT – July support.
3,132 USDT – strong base support, potential correction low.
📉 Technical Patterns:
Broken Upward Channel (orange lines): A clear downward breakout suggests a weakening of the previous trend.
Downward Trendline (purple): The current price is approaching it – a test and reaction (bounce or breakout) may occur.
📊 Stochastic RSI (oscillator at the bottom):
The indicator is entering the overbought zone (>80).
This may indicate an impending slowdown or correction, especially if the price encounters resistance at the purple downward trendline.
🔮 Scenarios:
✅ Bullish (if the breakout is upward):
A breakout of the purple trendline and resistance at 3,794 USDT could signal further gains towards 3,943 USDT or higher.
Confirmation could come from a retest of the purple line as support.
❌ Bearish (if resistance rejected):
Rejection from the trendline or the 3,794 USDT zone = possible correction to 3,504 or 3,383 USDT.
Break of 3,383 = potential decline to the 3,132–3,150 USDT zone.
🧭 Conclusion:
The market has regained strength from the local low but is at a potentially strong resistance zone.
Stochastic RSI overbought + near resistance = high risk of a near-term correction.
The key will be price performance within the purple trendline and 3,794 USDT.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.