$CVC is currently testing the upper boundary of a parallel channel on the 3-day timeframe. This signals potential momentum for a breakout, supported by strong price action. Here's a detailed outlook:
Key Levels to Watch
1. Resistance Levels (Targets):
First Target: $0.29
Second Target: $0.42
2. Support Levels (Buy Zone):
Entry Point (Buy Zone): $0.19–$0.21
This is the area where buyers are likely to step in.
3. Stop Loss:
Place a stop-loss at $0.17 to protect against downside risks.
Breakout Confirmation
Breakout Signal:
A strong 3-day candle closing above the parallel channel will confirm the breakout.
Volume:
Watch for increasing trading volume, as this will validate the breakout.
Strategy and Expectations
1. If Breakout Happens:
CVC could rally towards the $0.29 target, followed by $0.42 if momentum continues.
Gradually book profits at key resistance levels to lock in gains.
2. If Rejection Occurs:
Price may retrace to the buy zone near $0.19–$0.21, offering another entry opportunity.
3. Risk Management:
Always stick to your stop-loss at $0.17 to limit losses in case of market reversals.
Indicators to Monitor
RSI (Relative Strength Index):
If RSI breaks above 70, it indicates strong bullish momentum, but beware of overbought conditions.
MACD (Moving Average Convergence Divergence):
A bullish crossover will further confirm upward momentum.
Volume:
Higher-than-average volume during the breakout is crucial for sustainability.
Summary
Buy Zone: $0.19–$0.21
Targets:
Target 1: $0.29
Target 2: $0.42
Stop Loss: $0.17
Timeframe: 3-day chart
Stay disciplined and stick to the plan. Happy trading.
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