KASPA IS THE FIRST CRYPTO TO SOLVE THE BLOCKCHAIN TRILEMMA!
2025-01-27
Category: None

Pattern: Symmetrical Triangle

Formation: The chart shows a symmetrical triangle pattern forming on the weekly timeframe. This pattern typically indicates price consolidation and suggests that a breakout (up or down) is imminent.

Support and Resistance:
Support: Defined by the ascending green trendline.
Resistance: Defined by the descending red trendline.

Prognosis:
Prognosis 1: A bearish breakout (less likely).
Prognosis 2: A bullish breakout (more likely).

Indicators

Volume:
Volume is declining during the formation of the triangle, confirming the pattern’s validity. A volume surge is expected during a breakout.

RSI (Relative Strength Index):
Current RSI value is 44.55, indicating neutral momentum but leaning towards an oversold condition.

Stochastic Oscillator:
The stochastic is in the lower range (23.19), suggesting potential upward momentum soon.

Money Flow Index (MFI):
The MFI is showing a slight uptick, signaling that money inflows may be returning.

Market Cipher B:
Momentum is gradually increasing, with signs of bullish divergence.

Key Levels

Resistance:
$0.24522 (intermediate target).
$0.34669 (major target post-breakout).

Support:
$0.10 (triangle base and psychological level).


 Spot Trading Plan 

Entry Strategy

Breakout Confirmation:
Buy above $0.145 on a confirmed breakout from the triangle (with a 4-hour or daily candle close above resistance).

Volume Surge:
Enter only if the breakout is accompanied by high trading volume.

Stop Loss:
Place a stop loss below the breakout level or $0.12 to limit downside risk.

Profit Targets
First Take Profit:
$0.24522 (approx. 68% above breakout level).
Sell 50% of the position.

Second Take Profit:
$0.34669 (approx. 138% above breakout level).
Sell the remaining position.

Risk Management:
Allocate no more than 5-10% of your portfolio to this trade.

Maintain a risk/reward ratio of 1:3.

Monitoring:

Keep an eye on overall market conditions (Bitcoin dominance and trends) as they heavily influence altcoin performance.
Reassess if the price deviates significantly from the expected triangle breakout.

Bearish Scenario:
If the price breaks below $0.12 with high volume, wait for the $0.10 level to evaluate for potential entry or exit further positions.