KAVAUSDT is testing the daily supportThe price had a huge rejection from the weekly resistance on the 0.5 Fibonacci (0.6$) level as you can see from the upper chart.
At the moment the price is creating a huge Engulfing candle on the weekly timeframe, it includes the previous 5 bars (5 weeks).
About the support, the price is testing daily static support and dynamic weekly support. As for Long Position, the logic is the same even for the short scenario. We avoid opening a new short position above the weekly structures.
How to approach?
we are waiting for the weekly close and we will understand if the price is going to create a double bottom of 3.7$.
If the price is going to have a breakout from the descending channel and retest the daily resistance (around 5$) as new support, we can add to our watchlist and wait for applying our rules.
Remember, It's not enough a breakout, we need a strategy.
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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.
