OPUSDT Falling Wedge and False Breakout!OPUSDT s currently exhibiting a Falling Wedge pattern. The Falling Wedge is a bullish chart pattern that typically indicates a potential trend reversal from a downtrend to an uptrend. The pattern is formed by connecting the lower highs and lower lows with two converging trendlines, creating a wedge-like shape.
One notable characteristic of the Falling Wedge is that it often experiences false breakouts. A false breakout occurs when the price briefly moves beyond one of the trendlines but quickly reverses back into the wedge pattern, trapping traders who entered positions based on the breakout signal.
As per Plancton's rules, traders are paying close attention to the current price action as the market tests the key level at $1.6. This level is crucial because it could act as a potential resistance within the Falling Wedge pattern.
If the price manages to break out decisively above the $1.6 level, it would be considered a breakout signal according to Plancton's rules. This breakout to the upside would confirm the validity of the Falling Wedge pattern and potentially trigger a new uptrend for OPUSDT.
Based on Plancton's rules, a "new long" trade is suggested if the breakout occurs. A long position involves buying Opus with the expectation of a continued upward movement in price. Traders might place a stop-loss order below the recent swing low or the breakout level to protect against potential false breakouts or adverse price movements.
As for profit targets, traders can use various technical analysis tools to estimate potential upside price targets. Fibonacci extensions, previous resistance levels, or the height of the Falling Wedge pattern itself can be used to identify possible price objectives.
–––––
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 🦐
