TREE/USDT Trading Strategy for July 31, 2025

Market Context: TREE/USDT is showing high volatility, with recent price swings between $0.55 and $1.37. The market is buzzing with activity, making it a prime candidate for short-term trading opportunities. This strategy focuses on capitalizing on momentum and key technical levels for quick profits.

Strategy: Momentum Breakout with Scalping

Entry Point:

Long: Enter a buy position if TREE/USDT breaks above $0.76 with strong volume (look for a 5-10% surge in 1-hour trading volume). This signals a potential continuation of upward momentum.

Short: Enter a sell position if the price drops below $0.55, confirmed by a bearish candlestick pattern (e.g., bearish engulfing) and rising selling volume.

Stop Loss:

For longs: Set stop loss at $0.70 to limit downside risk.

For shorts: Set stop loss at $0.60 to protect against sudden reversals.

Take Profit:

Long Targets: TP1 at $0.85 (quick scalp), TP2 at $0.95, TP3 at $1.05 for aggressive traders.

Short Targets: TP1 at $0.50, TP2 at $0.45, TP3 at $0.40 for deeper corrections.

Technical Indicators:

RSI: Watch for RSI below 30 (oversold) for long entries or above 70 (overbought) for shorts on the 1-hour chart.

MACD: Look for bullish crossover (MACD line crossing above signal line) for longs or bearish crossover for shorts.

Volume: Confirm entries with a spike in trading volume to avoid false breakouts.

Risk Management:

Use 1-2% of your capital per trade to manage risk.

Leverage: Stick to 5-10x for controlled exposure; avoid high leverage (e.g., 75x) due to volatility.

Monitor news for sudden catalysts (e.g., exchange listings or protocol upgrades).

Exit Strategy:

Exit longs if price fails to hold above $0.76 after entry or if RSI shows divergence.

Exit shorts if price rebounds above $0.60 or volume dries up.

Why This Works: TREE’s recent volatility and exchange activity suggest strong momentum potential. Scalping breakouts with tight stops minimizes risk while targeting quick gains in a fast-moving market.

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