Let’s analyze the 1MBABYDOGE/USDT chart from a bullish perspective:
1. General Context:
We see a strong bullish movement followed by a recent correction. There are two lines drawn (upper resistance and support), which indicate a consolidation or possible accumulation zone.
2. Bullish Technical Analysis:
Solid Support:
The price is close to a major support, around 0.0038. Strong support often indicates a zone where buyers can enter, creating a base for a new bullish movement.
Retracement After Rally:
The correction that followed the last rally looks healthy, as large vertical moves tend to have retracements to seek liquidity. This could be a correction within an uptrend.
Rising Volumes:
At the peak of the rally, there was a significant increase in volume, indicating strong buyer interest. Even during the correction, the volume decreased, suggesting that sellers are losing strength.
Moving Averages (MA):
The MA 7 (yellow line) is starting to align with the MA 25 (purple line), and a bullish crossover (Golden Cross) could occur in the next few days if buyers return to action. The MA 99 is below the current price, which also reinforces the long-term bullish trend.
Consolidation Zone:
The price is oscillating between support (0.0038) and upper resistance. If it breaks the resistance, it could start a new bullish movement with a target above 0.0055.
3. Possible Bullish Scenario:
If the price holds the current support and there is an increase in buying volume, we can observe:
Target 1: Retest of upper resistance around 0.0055.Target 2: Possible continuation of the bullish movement to new levels, depending on the breakout.
Confirmation:
Watch for a daily close above upper resistance. Increased volume along with bullish candles (green bars) would be a strong indication of a recovery.