Based on the chart for DOGS/USDT, it’s forming a descending triangle, which is usually a bearish pattern. Here’s an analysis of whether to take a short position:
Why it might be good for a short trade:
1. Descending Triangle: This pattern often leads to a breakdown below the support level (around 0.0012594). If the price falls below that level with increased volume, it can signal a further downward move.
2. Volume: The declining volume indicates a breakout may be approaching. A spike in volume could confirm a bearish breakout, which would be an ideal time for a short trade.
3. General Market Sentiment: The current 5.49% drop indicates a bearish trend. This supports the idea of shorting if the breakdown occurs.
Key Levels to Watch Before Shorting:
• Support: The key support level is around 0.0012594. If the price breaks below this with a volume surge, it would confirm a short opportunity.
• Confirmation: Wait for the confirmation of the breakdown before entering the trade.
Risk Management:
• Consider setting a stop-loss above the descending triangle’s resistance line, or above the recent highs around 0.00142 to manage risk.
In summary, if the price breaks below the support level with volume confirmation, it could be a good opportunity to open a short position. However, waiting for a confirmed breakout is crucial before entering a trade.
