Let's do a detailed analysis on this chart:
Chart Analysis and Trend Direction
• Price Action: Price appears to have broken through a strong horizontal resistance area (blue band) and started an upward trend. This resistance area may now have turned into a strong support level.
• Trend Direction: Upward trend is dominant. There is potential to reach new peaks.
• Potential Targets: As shown in the chart, the price has the potential to reach the 16 USDT level. This would mean an upside of over 100% from the current price.
Support and Resistance Levels
• Support Levels:
• 6.00-6.50 USDT range (blue band): This zone can form a strong support.
• 5.00 USDT level: The main support level.
• Resistance Levels:
• 10.00 USDT may work as intermediate resistance.
• 16.00 USDT has been determined as the main target level.
Indicators
• Volume: An increase in volume supports the strengthening of the upward movement.
• RSI and MACD: It is important to examine these indicators and check whether they are in the overbought region.
Formations
• Price action resembles an “Ascending Triangle Pattern.” This pattern usually results in upward breakouts.
Strategy Suggestions
1. Short-Term Buy: If holding on to the support level at 6.50 USDT is successful, it can be considered as a buying opportunity.
Target 2: The first target is 10 USDT, the main target is 16 USDT.
3. Stop Loss: If a close occurs below 6.00 USDT, the loss can be stopped.
4. Volume Control: Increasing volume should be monitored during the rise.
Conclusion
This chart shows that an upward trend has begun. Especially breaking strong resistances can carry the price to higher targets. However, a stop-loss strategy should be implemented considering volatility. The potential for a move towards the 16 USDT level is quite high.
