Support and resistance analysis:
Support area:
The key support point focuses on the 3.523 level, which has historically shown strong support. If the price cannot maintain above this level, it may encounter further downward pressure, with potential downside targets of 3.303 and 2.407 respectively.
Resistance Area:
The nearest resistance level is set at 5.045. Once the price is able to successfully cross this barrier, the next important resistance level will be located around 5.309. A larger rise may even push the price to test the higher level of 16.626.
Trading strategy:
short term:
There is a possibility that the price could rise to the 5.045 resistance and possibly break out from there, continuing to show upward momentum. However, it is important to closely monitor how the price reacts to the resistance as any downward pullback could result in a pullback to the previous support area.
Mid-term:
If the price consolidates above the current level and continues to rise, it may signal the end of the long-term downtrend. In this case, the long-term target price may be locked at the high of 16.626.
Market monitoring recommendations:
It is highly recommended to continuously monitor the price behavior relative to the 5.045 resistance level and pay attention to the dynamics of trading volumes. These key indicators will provide us with deeper insights into the intentions of market participants and thus help us make more accurate trading decisions.
