Based on the chart TF: 4hrs , there is a strong possibility of a Bearish Rectangle pattern forming.
Here's a breakdown of the pattern:
Horizontal Resistance: The price has been consistently rejected at 0.25, 0.26 forming a horizontal resistance line.
Horizontal Support: The price has also found support at the 0.23, 0.22 , creating a horizontal support line.
Descending Trendline: A descending trendline connects the recent highs, indicating a bearish bias.
If the pattern continues to develop, the following scenarios are possible:
Breakout: If the price breaks below the support level, it could signal a significant downtrend.
Breakdown: If the price breaks above the resistance level, it could indicate a reversal to an uptrend.
False Breakout: The price might test one of the levels but then reverse, leading to a continuation of the current trend.
Key Indicators:
Volume: A decrease in volume during the formation of the pattern could suggest a weakening trend.
Moving Averages: A downward-sloping moving average (e.g., 50-day or 200-day) could reinforce the bearish outlook.
Relative Strength Index (RSI): A oversold RSI (below 30) might indicate a potential reversal, but it's important to consider other factors.
Conclusion:
While the chart suggests a Bearish Rectangle pattern, it's crucial to wait for a clear breakout or breakdown before making trading decisions.
