Based on the 1-hour chart of POL/USDT $POL
Directional Bias: Bullish (with caution)
Key Reasons from Price Action & Structure:
1. Higher Lows on Uptrend Line (Support Held):
The ascending trendline is intact, and the most recent candle shows price respecting this trendline after a dip—suggesting buyers are defending the trend.
2. Fibonacci Retracement Confluence:
Price bounced around the 61.8% and 78.6% Fib zone, a common reversal area.
The wick rejecting this area adds strength to the support zone and indicates potential bullish continuation.
3. Strong Recovery Wick:
Recent candle shows a strong lower wick touching trendline and bouncing back up, signaling buyer interest.
4. Volume & Momentum Context (Implied):
Though volume isn't shown, the wick behavior implies temporary selling exhaustion and buyer interest at key levels.
The EMA shows dynamic support being tested and respected.
Trade Idea: Consider long positions on confirmation candle closing above 0.2580 with target near 0.2630 and tight SL below 0.2550.
