Analyzing MAGIC's Key Support: Will the Triple Bottom Hold?
#magicusdt $MAGIC

MAGIC is testing a crucial support level around $0.40 to $0.50, forming a potential Triple Bottom pattern. This level has been tested three times, with the third test showing decreased trading volume, indicating reduced selling pressure. The RSI is in a neutral zone, suggesting a possible reversal. For confirmation, traders should look for a breakout above the nearest resistance level at $0.60 to $0.70, signaling a new bullish trend. The Triple Bottom is considered a strong reversal pattern, especially with rising volume and supportive technical indicators.

However, it's important to wait for confirmation, such as a price increase above key resistance or significant buying volume. Monitoring the retesting of support and price movement above resistance is crucial. Technically, MAGIC shows a long-term bearish trend, with prices below the 200-day MA on the daily timeframe and a bearish trend on the 4-hour timeframe, despite minor reversal signs. Prices are below VWAP on both timeframes, indicating dominant selling pressure.

RSI and RSI Volume Convergence suggest diminishing selling pressure, with RSI near oversold on the daily and neutral to overbought on the 4-hour timeframe. MACD shows a bearish signal with a small positive divergence on the daily and a slight bullish signal on the 4-hour. Strong support is at $0.40 to $0.50, with resistance at $0.70 to $0.80. Variations in cluster size and centroid dispersion indicate consolidation or potential reversal. The bullish scenario targets $0.60 first, then $0.70 to $0.80 if prices hold above $0.50. The bearish scenario suggests further decline below $0.40 if prices fall under $0.50 with significant volume.

Disclaimer: The information and publications are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 6thTrade

#ETH_ETFs_Trading_Today #Bitcoin_Coneference_2024 #6thTrade #BinanceSquareFamily