General Chart Analysis (Crypto Pair: VET/USDT)
1. General Comment
On the chart, we see that the long-standing downtrend has been broken and an upward movement has begun. This breakout can be considered a strong indicator of a trend change. The price action is trading within a clear upward channel.
Target and Prices
1. First Target: 9.00 USD zone, this level draws attention as a psychological and technical resistance.
2. Main Target: 11.32 USD, in the above target zone, it may reach the maximum level of a potential rally.
Support and Resistance Levels
1. Main Supports:
• 6.50 USD: Important support level for the post-breakout reversal test.
• 5.30 USD: This level needs to be stayed above for the trend to continue.
2. Main Resistors:
• 8.50 USD: Instant resistance level, closing above this level may strengthen the rise.
• 9.00 USD: The main resistance area, if the price breaks here, there may be potential for further upside.
Formations and Formation Reversals
• Breaking of the Downtrend: The rise appears to have started with the breaking of the downtrend line. This usually signals the beginning of a new bull trend.
• Potential Cup-Handle Formation: This formation may further support the ongoing upward movement.
Indicators
• Volume: Increasing volume indicates that the upward movement is healthy. Continuing volume supports the rise.
• RSI (Relative Strength Index): In the bullish zone but may have reached overbought levels, caution should be exercised.
• MACD: In positive territory and in an uptrend, indicating that momentum is upward.
Trend Direction
• Short Term Trend: Upward.
• Medium Term Trend: Signals of a reversal into a bullish trend.
• Long-Term Trend: The main trend is showing signs of an upward reversal, but it is important that the supports are solid.
Strategy and Recommendations
1. Purchase Strategy:
• If the price rises above 8.50 USD, it may be wise to buy.
• In case of declines, the 6.50 USD level can be determined as stop-loss.
2. Take Profit Strategy:
• 9.00 USD can be targeted as the first profit taking point.
• For longer term investments, the 11.32 USD level can be considered.
3. Risk Management:
• Levels below 6.50 USD can be used as stop-loss levels.
• It is important to consider the Risk/Reward ratio, volatility can be high.
Conclusion
The chart indicates a strong trend reversal. For the uptrend to continue, critical resistances must be broken. Careful risk management should be applied when buying and profit-taking levels should be determined. If the current uptrend is supported by strong momentum, upward targets can be realized. However, caution should be exercised if the price returns to the downtrend line.
