Current Observations:
Price: The price is at $0.41483, showing a significant intraday drop of -11.90%.
Moving Averages (MA):
MA60 (1-hour timeframe): The price is below $0.41967, indicating bearish momentum.
MA5 and MA10: Price has fallen below these short-term averages, confirming immediate downtrend pressure.
Volume: There’s an increase in volume during the last few bearish candles, suggesting strong selling pressure.
Trend: Price is in a clear short-term downtrend based on the slope of the MA and price action.
Trade Setup:
For a Short Position:
Entry: Enter short if price retests $0.4200-$0.4240 (previous resistance level near MA60) and fails to break above.
Take Profit (TP):
TP1: $0.4050 (nearest support zone based on current price behavior).
TP2: $0.3950 (strong psychological support and potential lower bound).
Stop Loss (SL): $0.4300 (above resistance to avoid false breakout losses).
Trade Duration: Short-term, around 2-6 hours.
Contingency Plan:
If price breaks above $0.4300 with high volume, exit short position and look for a potential long entry.
For a Long Position:
Entry: Enter long near $0.4050-$0.4080 (strong support zone).
Take Profit (TP):
TP1: $0.4250 (retest of MA60/resistance).
TP2: $0.4350 (recent swing high zone).
Stop Loss (SL): $0.3980 (below key support to avoid further downside risk).
Trade Duration: Short-term, around 2-8 hours.
Contingency Plan:
If price breaks below $0.3980, exit the long trade and wait for the price to stabilize around $0.3850-$0.3900 before considering a re-entry.
Risk Management:
Use no more than 2-3% of your portfolio per trade.
Monitor volume and price action closely to adjust your strategy if significant reversals or momentum shifts occu.
