Chart Analysis (Cryptocurrency Pair: WING/USDT - 12 Hour Chart)



1. General Comment



A symmetrical triangle formation is seen on the chart. This formation usually indicates that the price is in a period of compression and a breakout is approaching. Price movements have compressed towards the end of the triangle, creating the potential for a breakout.



Target and Prices



1. First Target: The 7,065 USD level stands out as a potential profit-taking area in case the triangle formation breaks upwards.


2. Main Target: The $7,949 level can be reached if the move continues to the height of the triangle.



Support and Resistance Levels



1. Main Supports:


• 5.583 USD: The level that currently acts as support.


• 5.147 USD: An important support area in downward movements.


• 5,035 USD and 4,911 USD: Critical support levels to watch out for in case the formation breaks down.


2. Main Resistors:


• 5.914 USD: Short-term resistance level, this level must be overcome for an upward breakout to occur.


• 7.065 USD: The first target level, may work as resistance.


• 7.949 USD: The main target level of the upward move.



Formations and Formation Reversals



• Symmetrical Triangle Formation: The price is stuck at the end of the triangle and a breakout is expected. This formation can be broken up or down, so attention should be paid to the direction of the breakout.


• Potential Breakout: If an upward breakout occurs, the formation target points to the resistance zones above.



Indicators



• Moving Averages (EMA/SMA): The price is trading near the major moving averages (EMA/SMA). It is important to stay above the moving averages for the continuation of the rise.


• Volume: It is necessary to check whether there is an increase in volume during the breakout. If the volume supports it, the strength of the movement increases.


• RSI (Relative Strength Index): The RSI is currently in the neutral zone and does not give any overbought or oversold signals. It is important to observe the RSI status after the breakout.



Trend Direction



• Short-Term Trend: Sideways-constriction trend.


• Medium Term Trend: The direction can be determined by breaking the formation.


• Long-Term Trend: In case of an upward break, a transition to a bull trend can be expected.



Strategy and Recommendations



1. Purchase Strategy:


• If the price rises above the $5,914 level, it may be logical to consider buying. Closes above this level may support the uptrend.


• In downward movements, reviewing positions or using stop-loss in cases where the price falls below support levels is important for risk management.


2. Take Profit Strategy:


• 7,065 USD can be targeted as the first profit taking level.


• The second take profit point can be determined as 7,949 USD.


3. Risk Management:


• 5.147 USD or the lower support line of the triangle can be used as the stop-loss level.


• It is important to consider the Risk/Reward ratio. Position size should be adjusted depending on the strength of the breakout.



Conclusion



The chart shows the potential for an upward breakout. Volume growth and breaking of important resistance levels can confirm this move. However, one should also be prepared for the risk of a downward breakout. It may be risky to enter a position before the direction of the breakout is clear, so one should wait for the breakout and volume confirmation.