This chart provides a technical overview of the Degen/USDT trading pair on the 4-hour timeframe, highlighting key price patterns, support/resistance zones, and potential future movements.
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📉 Key Trends and Patterns
1. Falling Wedge Pattern (Left Side):
A falling wedge is typically a bullish reversal pattern, especially when formed during a downtrend.
In the chart, price action was narrowing downward inside the wedge, which often signals a potential breakout.
Eventually, the price broke out of the wedge and moved sharply upwards, forming a strong impulse leg.
2. Impulse Leg and Consolidation Zone:
After the breakout, price entered a consolidation zone, where it moved sideways for a while.
This phase indicates market indecision, where both buyers and sellers are waiting for confirmation of the next trend.
After consolidation, the price formed an A-B-C corrective pattern, often seen as a part of a healthy pullback.
This suggests that the downtrend may have cooled off, and the market could be preparing for a new upward move.
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🔻 Support and Resistance Levels
Support Zone:
Around $0.18000, there is a strong support level where the price bounced back upward.
A "Higher Low" was formed here, indicating the start of a potential bullish structure.
Resistance Zone:
The major resistance lies between $0.24500 and $0.26500, where price previously faced rejection.
This will be a key area to watch if the price moves upward again.
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📊 Expected Future Movement
Since a Higher Low has already formed and price is near the breakout zone, there is potential for a bullish move.
The upward blue arrow on the chart suggests a possible rally toward $0.23000+ levels.
As long as price stays above $0.18000, the bullish structure remains intact.
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🔚 Summary
This chart indicates:
Selling pressure is weakening.
A bullish reversal may be underway.
If the price respects the higher low and support zone, we could see a move back toward the upper resistance levels.
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