ALGOUSDT wants the breakout?ALGOUSDT is currently exhibiting a falling wedge pattern. This pattern is characterized by converging trendlines that slope downward. In this context, the falling wedge suggests a period of consolidation and uncertainty in the market.
According to Plancton's trading rules, which are followed by many traders in the cryptocurrency market, a potential long trade could be considered if the following conditions are met:
Breakout from Weekly Resistance: The first condition is a breakout from the weekly resistance level. A breakout above this level would indicate a significant upward movement in the price and could be interpreted as a bullish signal.
Retest as New Support: Following the breakout, it's important to see a retest of the previously strong resistance level, which should now act as new support. This retest helps confirm that the breakout is legitimate and not a false signal.
In this scenario, if the price of ALGOUSDT manages to break out convincingly above the weekly resistance level and subsequently retests it as new support, it aligns with the principles outlined by Plancton. Traders who follow this strategy would consider opening a new long position, anticipating that the price may continue to rise.
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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.
Follow the Shrimp 🦐
