Break down of SUSHI on 1 hour candles

By EncryptShawn

6 days ago

6 days ago

Structure and Price Action:

**Descending Triangle Resistance**:
The chart shows price facing resistance along the **descending red trendline**, which forms the upper boundary of a **triangle pattern**. Sellers are consistently stepping in at lower highs.
**Ascending Support Line**:
The price is maintaining support along the green upward trendline, creating an **ascending triangle** structure. This suggests a potential breakout if buying pressure sustains.
**Key Consolidation Zone**:
Price is consolidating between **$2.10** and **$2.40**, with clear attempts to break resistance. The consolidation indicates indecision but also a build-up for a larger move.
**Retest of Order Blocks**:
Multiple **bullish order blocks** at $2.10–$2.00 have held as support, reinforcing buyer strength.

Support and Resistance:

**Immediate Resistance**: $2.40 (descending red trendline and prior swing high).
**Key Support Levels**:
$2.10: Primary ascending support line.
$2.00: Strong structural support aligned with bullish order blocks.
$1.80–$1.60: Secondary green support zone below the ascending trendline.

Indicators:

Moving Averages (EMA 20/50/100/200):

Price is above the **EMA 20** ($2.15) and **EMA 50** ($2.16), confirming short-term bullish bias.
The **EMA 100** ($2.08) and **EMA 200** ($2.07) are closely aligned, providing a strong support base if price pulls back.

Money Flow Index (MFI):

MFI is at **60.21**, showing moderate bullish momentum with room for price to move higher before overbought conditions are reached.

Stochastic RSI:

The Stochastic RSI is currently near **overbought territory** (100.00 and 99.89), suggesting a short-term pullback may occur if resistance holds.
However, sustained buying pressure could keep the Stochastic RSI elevated.

Volume:

Volume remains stable but has declined slightly during consolidation, suggesting indecision.
A volume spike on a breakout or breakdown will confirm the next move.

Pattern Analysis:

The **ascending triangle** pattern suggests bullish continuation, provided price breaks above the descending red trendline at $2.40.
Failure to break resistance could lead to a test of lower supports around $2.10 or $2.00.

Probabilistic Outlook:

Bullish Breakout (Primary Scenario):

If price breaks above $2.40 with strong volume, the ascending triangle confirms bullish continuation.
Key upside targets:
**First Target**: $2.60–$2.65 (next major resistance zone).
**Second Target**: $2.80–$3.00 (psychological and prior highs).

Bearish Breakdown (Alternate Scenario):

If price loses support at $2.10 and $2.00, bearish momentum could build.
Key downside targets:
**First Target**: $1.80 (green support zone).
**Second Target**: $1.60 (historical support and bullish order block).

Key Signals to Watch:

A breakout above $2.40 with rising volume = **Bullish continuation**.
A breakdown below $2.10 = **Bearish reversal confirmation**.
Monitor volume during any breakout or breakdown for validation.

Conclusion:
The chart is consolidating within an **ascending triangle**, with price facing resistance at $2.40. The overall structure remains bullish, and a breakout above $2.40 could lead to further upside toward $2.60–$2.80. However, failure to break resistance may result in a pullback toward $2.10 or $2.00 before the next directional move.

EncryptShawn

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