XTZUSDT is currently exhibiting a bearish trend, evident through the formation of Lower Lows (LLs) and Lower Highs (LHs) on its price chart. This downward movement is further emphasized by the creation of a bearish flag pattern, recognized as a continuation pattern indicating a potential extension of the prevailing downtrend. Additionally, this bearish sentiment is confirmed by the AB=CD harmonic pattern, showcasing a structure where the CD leg, currently forming, may signify a potential reversal zone at point D.
Given this market scenario, utilizing the Fibonacci retracement tool presents an opportunity for a strategic entry into the trade. To mitigate potential risks, the previous Higher Low (HL) is set as a stop-loss level, acting as a safeguard in case of adverse price movements. Furthermore, the trade strategy involves setting two distinct profit targets (TP1 and TP2) based on a 1:1 and 1:2 risk-reward ratio, respectively.
Given this market scenario, utilizing the Fibonacci retracement tool presents an opportunity for a strategic entry into the trade. To mitigate potential risks, the previous Higher Low (HL) is set as a stop-loss level, acting as a safeguard in case of adverse price movements. Furthermore, the trade strategy involves setting two distinct profit targets (TP1 and TP2) based on a 1:1 and 1:2 risk-reward ratio, respectively.