IoTeX / TetherUSUpdated IOTXUSDT is creating a pennant
IOTXUSDT is testing the $0.022 area, which serves as a local support level within the market. This level holds significance as it has previously acted as a barrier for downward price movements.
There is a possibility that the market could experience a pullback from this support level, leading to a retracement towards the 0.5 Fibonacci level. The Fibonacci retracement is a commonly used technical analysis tool that measures potential levels of price retracement after a significant move. If the market follows this pattern, it suggests that a bearish impulse could develop, indicating a potential continuation of the downward trend.
Furthermore, the market currently has liquidity available around the $0.015 area. Liquidity refers to the volume of buy and sell orders available in the market. In this case, the $0.015 area contains a significant concentration of buy orders, indicating potential support if the price were to drop further.
If the market experiences a breakout from the support level and subsequently retests it as a new resistance, it aligns with the principles of Plancton's Rules. Plancton's Rules is a trading strategy that emphasizes short positions in the market when price breaks below a support level and retests it as resistance, suggesting a bearish trend continuation.
Considering these factors, traders and investors will closely monitor the price action of IOTXUSDT to assess whether the support level holds or breaks. A break and retest as resistance may lead to new short positions being initiated in line with Plancton's Rules.
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Follow the Shrimp 🦐
Keep in mind.
There is a possibility that the market could experience a pullback from this support level, leading to a retracement towards the 0.5 Fibonacci level. The Fibonacci retracement is a commonly used technical analysis tool that measures potential levels of price retracement after a significant move. If the market follows this pattern, it suggests that a bearish impulse could develop, indicating a potential continuation of the downward trend.
Furthermore, the market currently has liquidity available around the $0.015 area. Liquidity refers to the volume of buy and sell orders available in the market. In this case, the $0.015 area contains a significant concentration of buy orders, indicating potential support if the price were to drop further.
If the market experiences a breakout from the support level and subsequently retests it as a new resistance, it aligns with the principles of Plancton's Rules. Plancton's Rules is a trading strategy that emphasizes short positions in the market when price breaks below a support level and retests it as resistance, suggesting a bearish trend continuation.
Considering these factors, traders and investors will closely monitor the price action of IOTXUSDT to assess whether the support level holds or breaks. A break and retest as resistance may lead to new short positions being initiated in line with Plancton's Rules.
–––––
Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.
Note
Testing the supportNote
33% 
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