$TROY You must have doubts about the phenomenon of TROY's price plummeting by 60%. To clarify this confusion, we need to analyze the weekly chart in depth. From a technical analysis perspective, the area around 0.0056 is of great significance; it served as a key support level for a long year between 2021 and 2022.
A support level in technical analysis refers to a range of prices where, due to a large amount of buying, the downward trend in price is suppressed. When this important support level is broken, the market structure undergoes a fundamental change, and this area instantly shifts from a support role to a strong resistance level.
A resistance level, on the other hand, is a price range that is difficult to break through during the price increase process due to a large influx of selling. After a consolidation period of 749 days, the price successfully broke out of the original range. This so-called box consolidation refers to the price fluctuating within a relatively fixed upper and lower limit over a period of time, forming a box-like shape. This breakout marks the price entering a brand new box range, namely 3598-5643. Within this new box, the price trend shows a certain regularity; whenever it touches the price point of 3598, it tends to trigger a rebound. This phenomenon is not accidental, but rather a result of the market's supply and demand dynamics. Multiple tests of the 3598 price level indicate that there is strong support around this price level.
From a trading strategy perspective, entering at the 3598 price level is somewhat reasonable. This is because, after multiple tests, the effectiveness of support at this price level has been somewhat validated. If one chooses to buy at this price level, a stop-loss can be set to control risk, using the previous low as the stop-loss standard. With this operation, the maximum loss would be only about 10%. This strategy aims to take advantage of the market price fluctuation patterns while controlling risk and seizing potential profit opportunities.