ALGOUSDT breakout soon?ALGOUSDT is currently in the process of testing the $0.11 area, and it is contained within a Falling Wedge pattern. The Falling Wedge is a bullish chart pattern that often suggests a potential trend reversal from a downtrend to an uptrend. It is formed by connecting lower highs and lower lows with two converging trendlines, creating a wedge-like shape.
Additionally, the price has recently retested the weekly support level at the $0.1 area. A retest of support occurs when the price briefly moves back to a previous support level after a breakdown, and this level is once again tested to check if it now acts as resistance.
According to Plancton's rules, traders will closely monitor the price action around the $0.11 area and the Falling Wedge pattern. A decisive breakout above the upper trendline of the Falling Wedge, accompanied by significant trading volume, would be considered a breakout signal.
If the price successfully breaks out above $0.11, Plancton's rules would suggest a "new long" trade. This means that traders would consider opening a long position on ALGOUSDT, expecting the price to continue its upward movement.
Regarding profit targets, traders can use various technical analysis tools to identify potential upside price targets. Fibonacci extensions, previous resistance levels, or the height of the Falling Wedge pattern itself can be utilized to estimate possible price objectives.
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Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ Black structure -> <= 1h structure.
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