There's a very long descending line of resistance going all the way back to early 2021 - this has been tested a few times historically and the price has failed to push through on every occasion.
Once again this level has been tested in the past few days and again it seems to have rebounded to the downside; we do however have a nice level of consolidation to help us predict how fast and how far the price may drop.
We're setting our target at the level shown, a nice 14% below the Short entry as illustrated to the bottom of the given channel.
Did you also use any indicator or maybe news as well? Or was it just based on TA?
theCrypster
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@SwallowPremium, Hey, thanks for the comment! All our Ideas are generally a mix of Technical Analysis approaches combined with our in-house signal generator "Crypto Tipster v2" running on default settings.
We like to use Trend Lines and Support/Resistance Levels to create areas of consolidation or accumulation/distribution within channels or triangular formations.
What we see above is a large descending trend line (which the price has recently been rejected by) and a parallel channel (which the price is currently near the upper limit of) - combine this with a Sell signal from our Crypto Tipster v2 Indicator and we'll write an Idea about it! 👍