The market is testing an important supply zone as you can see on the daily timeframe. (the upper chart).
On the 4h Timeframe (lower chart) the price had a breakout from the triangle after a false breakout but got a rejection from the previous support now new resistance.
Now the price is testing the dynamic resistance around 0.5$ and static 4h resistance.
How we can approach this scenario? We'd like to see a clear breakout from the dynamic resistance and retest the previous resistance as new support.
0.55$ could be a safe place to apply our strategies and open a new long position.
––––– Follow the Shrimp 🦐
Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ Black structure -> <4h structure.
Comment
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The price is testing the 4h resistance after a shy attempt of the breakout from the descending channel. No volume so far.