Analysis
1. Target and Prices
• Main Target: The target level determined on the chart is around 51.50 USD, which indicates a potential increase of 144.46%.
• Intermediate Targets: A potential rise towards the 31 USD level can be expected. If this level is broken, the continuation of the movement towards higher targets may be possible.
2. Support and Resistance Levels
• Support Levels:
• 20.00 USD: The main support level, staying above this area is important for maintaining the uptrend.
• 16.00 USD: Second strong support level.
• Resistance Levels:
• 24.50 USD: First strong resistance level.
• 31.00 USD: An important minor resistance level.
3. Indicators
• No information is given about the indicators, but according to the trend structure, an increase in volume may support the price to reach higher targets.
• Fibonacci Levels: Price movements are compatible with Fibonacci levels. Persistence above these supports should be ensured in order to reach target levels.
4. Formations and Formation Reversals
• Falling Wedge Formation: This formation shows that the downtrend has ended and the price is ready to move upwards. The upside potential is quite high.
• Pattern Reversals: If the pattern is completed and the price breaks upwards, a strong upward momentum can be expected.
5. Trend Direction
• Short-Term Trend: It has shown a horizontal-downward trend, but it is giving signals of recovery by holding on to support levels.
• Medium and Long Term Trend: The general trend direction is up. Completion of the wedge formation may trigger an uptrend.
6. Strategy Proposal
• Buying Strategy: If the price breaks the upper line of the falling wedge formation and holds above it, buying opportunities can be evaluated. Targets can be monitored as 31 USD and 51.50 USD levels.
• Profit Taking: Partial profit taking can be done at the 31 USD level, appropriate risk management should be done to protect the position in case of pullbacks.
• Stop Loss: A stop loss can be set below the 16 USD level. This level should be considered as a region where the formation can be considered invalid.
Comment
The price breaking the upper band of the falling wedge formation indicates a strong upside potential. Target levels are quite high and price movements may strengthen with volume support. However, maintaining support levels is critical. Investors are advised to develop strategies by performing risk management and volume analysis.