$DOGS /USDT on Binance shows a 15-minute interval, meaning each candlestick represents 15 minutes of trading activity. Here's a breakdown of the analysis:
1. Current Price ($0.0011414): This is the last price at which DOGS was traded. It's currently slightly above where it was in the previous candlestick, indicating a small recovery after a decline.
2. Resistance ($0.0011754): This is the highest point that DOGS/USDT has reached recently, as seen on the chart. If the price rises to this level again, it might struggle to break above it because traders could sell at this point, expecting the price to fall again. Resistance levels often act as a ceiling.
3. Support ($0.0011151): This is the lowest point the price has reached before it bounced back. Support levels often act as a floor, where the price finds it difficult to fall below because buyers step in at this price.
4. Long Trade Suggestion: If the price breaks above the resistance level of $0.0011754, it might continue to rise. Traders might consider entering a long (buy) position at this point, with potential targets (where they might sell to take profits) slightly higher, at around $0.0011853 and $0.0011950.
5. Short Trade Suggestion: Conversely, if the price drops below the support level of $0.0011151, it could continue to decline. Traders might consider entering a short (sell) position here, with targets set lower, around $0.0011050 and $0.0010940.
These resistance and support levels are key areas where the price has historically struggled to move past, either on the upside (resistance) or downside (support). The trading strategy suggests buying if the price breaks above resistance or selling if it breaks below support, aiming to profit from these movements.
This analysis helps traders decide when to enter or exit trades based on price behavior at these critical levels.
