VELODROME/USDT – In-Depth Technical Analysis
🔹 Current Price: $0.1748
🔹 Timeframe: 4H Chart
🔹 Market Outlook: The VELODROME/USDT pair is showing signs of recovery after consolidating near a strong demand zone. This setup could offer a solid opportunity for both short-term and swing traders.
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Market Overview
VELODROME has experienced a downward correction over the past few sessions but has now reached a crucial demand zone (highlighted in blue). Historically, this zone ($0.1700–$0.1750) has acted as a significant support area where buyers step in, driving the price higher.
The technical indicators and price action suggest that a potential bullish reversal is on the horizon. However, the market needs confirmation through key breakout levels before traders can act decisively.
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Key Technical Levels
1. Support Levels:
$0.1700–$0.1750 (Demand Zone): The price has consistently found support here, with buying pressure evident from the candlestick wicks.
$0.1600: A deeper support level in case the current zone fails.
2. Resistance Levels:
$0.1819: Immediate resistance and the first hurdle for bulls. A breakout above this level will indicate the resumption of bullish momentum.
$0.1898: Major resistance that aligns with previous highs and a key target for upward movement.
3. Trendlines and Moving Averages:
The price is following an ascending trendline from the lower support levels, indicating a gradual shift toward bullish sentiment.
The 50 EMA (yellow) is acting as minor resistance, while the 200 EMA (blue) is a major barrier for the price to overcome.
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Volume Analysis
The trading volume has started to increase near the demand zone, suggesting accumulation by buyers. A significant spike in volume during a breakout above $0.1819 would confirm bullish momentum and validate the trade setup.
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Indicators Overview
1. RSI: The Relative Strength Index is moving upward from oversold levels, indicating a reversal is in progress.
2. MACD: The MACD is showing signs of a bullish crossover, further supporting the case for an upward move.
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Trading Strategy
Bullish Scenario:
Entry Zone: Enter within the $0.1748–$0.1750 range for early positioning. Alternatively, wait for a breakout above $0.1819 for confirmation.
Targets:
Target 1: $0.1819
Target 2: $0.1898
Stop-Loss: Place a stop-loss below $0.1700 to manage risk.
Bearish Scenario:
If the price fails to hold the $0.1700 level, the next support lies near $0.1600. A breakdown with high selling volume could trigger further downside.
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Risk Management and Recommendations
Risk-Reward Ratio: Ensure at least a 2:1 reward-to-risk ratio to optimize profitability.
Position Sizing: Avoid over-leveraging; size your position based on your risk tolerance.
Confirmation: Wait for a breakout above $0.1819 with volume to confirm the bullish trend before entering heavy positions.
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Conclusion
VELODROME/USDT is at a pivotal moment, trading within a well-defined demand zone that has historically led to bullish reversals. With strong support below and potential resistance targets above, this setup offers a favorable risk-to-reward ratio for traders.
Keep monitoring the price action around $0.1819 and adjust your strategy accordingly. Patience and discipline are key to maximizing gains while minimizing risks.
Stay updated
for further analysis and trade safely!
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