#CYBER
Trendlines are among the most important technical analysis tools for identifying dynamic support and resistance levels. Their significance depends on how price reacts to and respects these levels.
First: Main Ascending Trendline (Blue)
On the 1-hour timeframe, we can identify a major ascending trendline (blue) acting as dynamic support, with price currently trading above it.
At first glance, the current price action may represent a false breakdown below this trendline. Therefore, we are looking for price to recover and stabilize above it, allowing the trendline to maintain its role as support and preserving the bullish outlook.
Second: Descending Trendlines (Orange)
During previous bearish corrective movements, descending trendlines (orange) were formed, demonstrating their technical significance through repeated price reactions.
In the first setup, an upside breakout above the descending trendline triggered a strong bullish move. This reinforces the importance of monitoring these trendlines, as breaking above them may signal the beginning of a new upward movement.
Current Setup & Expected Target
We are currently observing a second descending trendline (orange), with price approaching a potential upside breakout.
We are waiting for confirmation of the rebound and a recovery in bullish momentum. If the breakout is successfully confirmed, the next potential price target will be:
Target: 0.280
Invalidation Condition
The bullish scenario remains conditional on price recovering and holding above the main ascending trendline (blue).
However, continued candle closes below this trendline would indicate a failure of the pattern and invalidate the bullish setup, requiring a reassessment of the overall price structure.
Conclusion
Price is approaching a technically important area, where its reaction to the main ascending trendline will be crucial, alongside the potential breakout above the second descending trendline.
Confirmation of the rebound and upside breakout will be the key factors in activating the bullish scenario, with a potential target of 0.280.
