The technical analysis of the HIGH/USDT pair has been made on the chart and the price movements seem to be moving within a compressed triangle formation. Below are the analysis, support-resistance levels and strategy recommendations for this situation:
Technical Analysis:
1. Support and Resistance Levels:
• Support Level: The nearest support level on the chart is in the 1.30 USD area. The price has found support from this level several times and has attempted to rise. This area can act as a strong support level.
• Resistance Level: The first important resistance level in the upward movement is in the 1.41 - 1.37 USD region. Above this level, 1.59 USD and 1.63 USD as stronger resistance should be followed. These levels will be the critical resistances that the price will test.
2. Formations:
• A symmetrical triangle formation is seen on the chart. This formation usually indicates that the trend will continue depending on the direction of the breakout. If the triangle breaks upwards or downwards, it may be necessary to act according to the trend.
3. Indicators:
• Moving averages (MA and EMA) are above the price, which could be a signal that the price should break upwards. In case of an upward breakout of the triangle, closing above these moving averages can be expected.
Trend and Direction:
• Trend: The price is currently stuck and it may be logical to wait for a breakout to determine direction. If the price breaks the triangle formation upwards, an upward trend may begin, but if a downward break occurs, a pullback to support levels may occur.
Strategy and Position:
1. Purchase Strategy:
• It may be logical to open a buy position once the price breaks the resistance level above 1.41 USD. After the breakout, the price can be expected to gain further momentum with the increase in volume.
2. Stop-Loss Strategy:
• If the price moves down and falls below the 1.30 USD support level, it may be logical to place a stop-loss. In such a case, it can be considered that the downside risk will increase.
3. Take Profit Strategy:
• If the upward breakout occurs and the price reaches the level of 1.59 USD, it may be a good strategy to consider taking profit gradually. If the price breaks this resistance level, some of the positions can be kept and the rise can be followed.
Conclusion:
The compressed structure on the chart indicates that a breakout is imminent. If an upward breakout occurs, the price can be expected to make a rapid move towards resistance levels. However, it would be strategic to take a position according to the direction of the breakout and minimize risk by using stop-loss.
