---
🚀 DEGO/USDT Technical Analysis: Cup and Handle Breakout Confirmed! 🚀
DEGO has shown an impressive surge, and the technical indicators suggest we might be at the beginning of a significant bullish trend. Let’s dive deeper into what’s happening on the DEGO/USDT daily chart and what traders should look out for in the coming days.
📊 Key Observations:
1. Classic Cup and Handle Formation:
The chart shows a well-defined cup and handle pattern, a strong bullish indicator in technical analysis. This pattern signals a potential breakout after a period of consolidation, which is exactly what we’re seeing now.
2. Breakout Confirmation:
DEGO has broken above the key resistance level around $2.95, which was the neckline of the cup. This breakout is significant as it indicates strong buying pressure and increased market confidence. If this level is maintained, it could act as new support, paving the way for further gains.
3. Volume Surge:
The breakout is accompanied by a notable increase in trading volume, with 23.35 million USDT traded in the last 24 hours. High volume during a breakout often suggests that the move is backed by strong market participation, reducing the chances of a false breakout.
📈 Price Targets:
Immediate Resistance: The next major resistance is around $3.50. A successful push beyond this level could open the door to higher targets, potentially testing the $4.00 - $4.20 zone.
Support Levels: If DEGO faces a pullback, key support levels to watch are $2.95 (the breakout point) and the psychological level at $2.50. Holding these supports will be crucial for maintaining bullish momentum.
🧐 What to Watch For:
1. Retest of Breakout Level:
It’s common for assets to retest the breakout level before continuing their upward trend. Traders should keep an eye on whether DEGO holds above $2.95 in case of a pullback.
2. Market Sentiment:
Broader market conditions, especially in the crypto space, can impact DEGO’s performance. Positive sentiment in the overall market can further fuel this breakout, while any negative news could slow down the momentum.
3. RSI and Overbought Conditions:
Keep an eye on the Relative Strength Index (RSI). If it enters overbought territory, there might be a short-term correction. However, strong breakouts can often stay overbought for a while during bullish runs.
🚀 Conclusion:
DEGO/USDT is showing strong bullish signals with the breakout of a textbook cup and handle pattern. If this momentum continues, we could see DEGO reaching new highs in the near term. As always, stay cautious, manage your risk, and monitor key support and resistance levels.
📊 What’s your take on DEGO’s breakout? Are you bullish or expecting a retest? Drop your thoughts in the comments! 💬
