DENT - Potential Price Reversal at Golden Pocket and FVG ZoneIn this TradingView chart for the DENT/USDT perpetual contract on the 4-hour timeframe, the current price action is being analyzed with a focus on key Fibonacci and market structure levels that indicate potential price movement. Below is an extensive description of the setup:
1. Golden Pocket Support Zone:
- Highlighted in yellow, this area represents the golden pocket derived from a significant upward trend. The golden pocket, located between the 0.618 and 0.65 Fibonacci retracement levels, is known as a high-probability reversal zone.
- The price recently reacted off this level, signaling potential bullish interest in the zone.
2. Fair Value Gap (FVG):
- The blue zone above current price action highlights an unfilled Fair Value Gap (FVG) left behind during the prior downtrend. This area, located near 0.00078, may act as a potential liquidity target if the price begins to retrace upward.
- The Fibonacci retracement is also drawn, intersecting with this zone, reinforcing its significance as a key resistance area.
3. Potential Scenarios:
- Bullish Retracement: The green path anticipates a short-term upward move where the price may climb toward the FVG resistance zone. This move could align with traders looking to target the imbalance created by previous price action.
- Bearish Continuation: The red arrow outlines the scenario where price, after testing the FVG, resumes its downward trajectory, breaking through the golden pocket and continuing its bearish trend.
4. Technical Overview:
- The chart shows clear evidence of a prior bearish trend, with current price action suggesting a temporary pause or reversal. Traders should monitor price behavior around the golden pocket and FVG zones for confirmation of either scenario.
- Breakdowns below the golden pocket could indicate further downside momentum, while breakouts above the FVG might suggest a shift in market sentiment.
This setup provides a roadmap for potential price action and highlights critical levels for traders to watch for entry, exit, and risk management.
