Current situation
COTI is currently trading in a consolidation phase on the 4-hour time frame after breaking out of the ascending channel. The price is testing the support trend line, being around the $0.11091 level.
Explanation of Graph
The chart shows that COTI is forming an ascending channel, which usually indicates a bullish trend. However, recent price action has broken the lower boundary of this channel, indicating a possible change in momentum. The support trend line now plays the role of a critical level that can determine further movement.
Buying Tips
Entry Point: Consider entering a long position if COTI holds its current support level near $0.11091. This will indicate a high probability of a rebound from the support level.
Stop Loss: To manage risk, set a stop loss just below the current support level, around $0.10500. This will ensure minimal losses in case of further price breakdown.
Profit Targets: Set profit targets at previous resistance levels around $0.11500 and $0.12000. These levels have shown significant price action in the past and are likely to act as resistance again.
Monitoring: Constantly monitor price movement and trading volume. A significant increase in volume at a support level could indicate a possible bullish reversal. On the contrary, a decrease in volume may indicate weak buying interest, which requires a review of the position.
Conclusion
The COTI market is at a critical juncture and further movement depends on the current support level. Traders should closely monitor support hold or breakout confirmation to make informed decisions. A confirmed hold above support will provide a good buying opportunity, while a breakout will require further caution.
Join us:
🔥Improve your trading skills with Crypto Scouts!🔥
Stay up to date with the latest market trends and strategies on our Binance blog. Follow us on social media for live updates and community discussions. Be vigilant and adapt your strategies as the market changes. Remember, the crypto market is highly volatile and informed decisions are critical to success.
Team 🔍Crypto Scouts