1. Formation and Trend Direction:
• A compression formation (symmetrical triangle) is visible on the chart. Such formations result in a strong breakout in the price, either upwards or downwards.
• Trend direction: The possibility of an upward breakout is high, as the price is getting squeezed by moving upwards from the support levels. Also, the price is trading above the 50 and 200 moving averages.
2. Support and Resistance Levels:
• Support: 2.4605 USDT and 2.0545 USDT levels are evident as strong support areas.
• Resistance: The first major resistance level is 2.9025 USDT. If this level is exceeded, there is the potential to rise to 3.50 and 4.00 USDT levels.
3. Target and Prices:
• Short-term target: 2.9025 USDT (upper resistance of the formation).
• Medium term target: 3.50-3.80 USDT zone.
• Long-term target: 4.00+ USDT level can be achieved with the upward break of the triangle formation.
4. Indicators:
• Moving Averages (MA): The price is above the 50-day (red) and 200-day (green) MA, supporting that the uptrend is strong.
• Momentum and Bollinger Bands: Since the price is in a squeeze zone, an increase in volatility can be expected. This indicates a strong move.
5. Strategy and Recommendations:
• Buying strategy: Positions can be taken above the 2.4605 level. However, an increase in volume confirming the upward break of the triangle should be expected.
• Stop-loss: Position can be closed if there is a close below 2.0545 USDT.
• Take-profit: First profit taking can be done in the range of 2.90-3.00. For higher levels, a part of the position can be left open.
6. Risk Management:
• In short-term transactions, it would be logical to proceed with low volume positions until the direction of the breakout of the formation becomes clear.
• It is critical to follow the news flow as volatility may increase depending on market conditions.
Volume increases and price movements at support-resistance levels should be monitored carefully.