This chart for the $1MBABYDOGE /USDT pair on the 4-hour timeframe shows a significant pullback after a sharp upward movement. Here's a professional analysis:
1. Trend Analysis: The asset recently experienced a strong upward rally, but the red candlesticks indicate a correction phase. This suggests a temporary sell-off after an overbought condition.
2. Support and Resistance Levels:
Support: $0.0047492 (24h low) is an immediate support level.
Resistance: $0.0067042 (24h high) acts as the immediate resistance.
3. Long Entry Strategy: If the price stabilizes near the support zone at $0.0047500, consider a long position targeting $0.0056000 as the first target and $0.0060000 as the second. Stop loss for this position can be placed at $0.0047000 to minimize risk.
4. Short Entry Strategy: If the price fails to break above $0.0050000 and shows rejection, a short position can be initiated. Target $0.0045000 with a stop loss at $0.0052000.
5. Market Sentiment: The recent 15% drop highlights bearish pressure, suggesting caution. Wait for confirmation of price action near key levels before entering.
Conclusion: Trade cautiously, respecting risk management. Breakout or breakdown near critical levels will determine the next trend direction.
