JUP/USDT is holding above the neckline of the inversed head & shoulders formation on the daily timeframe📈
Breakdown and Explanation:
1. JUP/USDT
This refers to the trading pair Jupiter (JUP) and Tether (USDT). It means you're looking at the price of JUP in terms of USDT (a stablecoin, close to 1 USD).
---
2. Daily Timeframe
This means the chart being analyzed shows daily data. Each candlestick represents one day of price movement.
---
3. Inverse Head and Shoulders Formation
This is a common bullish chart pattern used in technical analysis.
A normal Head and Shoulders pattern usually signals a potential downtrend.
An Inverse (or Inverted) Head and Shoulders is the opposite – it signals a potential uptrend or price reversal from down to up.
The pattern consists of:
A left shoulder (small dip),
A head (a deeper dip),
A right shoulder (another small dip),
And a neckline (a resistance level connecting the highs between shoulders and head).
When the price breaks above the neckline and stays above it, it usually indicates bullish strength – meaning the price might continue rising.