EIGEN/USDT Asset Analysis (2-Hour Chart)
Trend situation:
The asset displays a narrowing "descending triangle" formation, which often indicates the possibility of a breakout either higher or lower depending on the prevailing strength.
The price is close to the upper resistance line, which may signal an imminent exit from the formation and a possible direction of further movement.
Indicator:
Ichimoku: The price is in the Ichimoku cloud, which indicates uncertainty at the moment. However, the nearest Kijun line (3.376) and Tenkan (3.320) show the level of current equilibrium. A breakout above the cloud will signal a possible rise.
Bollinger: The upper Bollinger band is located at 3.490, which may serve as resistance in case of further growth. The lower band at 3.246 may act as support.
Parabolic SAR: The SAR dots (3.587) are above the current price, indicating a continuing bearish phase in the short term. A breakout above the SAR may signal a trend reversal.
Moving averages:
MA7 (3.367): The price is now above this moving average, indicating a local uptrend.
MA25 (3.270): The price is holding above this average, which confirms the strength of the short-term upward movement.
MA99 (3.248): The price is approaching the long-term average, which is important for assessing the sustainability of the movement. A breakout of this line will confirm a change in the medium-term trend.
Trading volumes:
Trading volume at 494.294K is relatively moderate, indicating low activity among market participants. With increasing volumes, more significant price movements should be expected.
Support and resistance levels:
Support: The nearest support is at 3.270 (MA25) and 3.246 (lower Bollinger band). If these levels are broken, the price may test the 3.003 level.
Resistance: Resistance is at 3.490 (upper Bollinger Band) and 3.587 (parabolic SAR). A break of these levels could trigger a strong upward momentum.
Strategies:
Short-term: A breakout of the triangle borders is expected in the near future. An upward breakout with a candle closing above 3.490 will be a buy signal. In case of a decline below 3.270, a sale is possible with a target of up to 3.003.
Medium term: Holding above current MA levels and breaking the upper resistance could be the start of a new uptrend. It is recommended to monitor volumes to confirm the moves.
In general, the asset is in the zone of uncertainty, but an exit from the triangle and acceleration of dynamics in the next few trading sessions is possible.
