MASKUSDT is creating a cup and handleMASKUSDT is currently exhibiting a fascinating technical pattern known as the "cup and handle," which can be an indication of a potential bullish continuation in the cryptocurrency market.
Cup Formation: The first phase of the pattern is the "cup," which has formed after a notable uptrend. The cup is characterized by a smooth, rounded U-shape on the price chart, representing a temporary retracement or consolidation. During this phase, traders witnessed a healthy correction in the price, allowing the asset to catch its breath before potentially resuming its upward journey. The depth of the cup may vary, and the pattern typically spans several weeks or months.
Handle Formation: Following the completion of the cup, we are observing the "handle" phase. The handle is a smaller pullback that occurs after the cup's formation. It takes the shape of a short-term, downward-sloping structure. The handle should ideally not retrace more than one-third of the cup's depth. This relatively shallow and lower volume phase indicates a consolidation period with potential accumulation by market participants.
Breakout: The most exciting part of the cup and handle pattern is the potential breakout. Currently, MASKUSDT is testing the neckline, which represents the highest point of the handle. A breakout above this neckline is a critical bullish signal. When the price successfully breaks out above the neckline, it confirms the continuation of the previous uptrend and triggers buying interest among traders.
According to Plancton's Rules, a new long position may be considered if the price convincingly breaks out above the neckline of the cup and handle pattern. The breakout signals renewed strength in the asset, indicating the potential for further upside movement
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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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