🚨 MAGIC/USDT: Is the Downtrend Done? Unpacking the Consolidation!

Market Outlook: After a period of price declines, MAGIC appears to be in a consolidation phase, potentially forming a falling wedge pattern on the 4-hour chart. This could indicate a potential bullish reversal, however, it remains a neutral pattern until a clear breakout occurs. Shorter-term price action shows some recent volatility with a slight recovery from lows, but continued caution is advised.

💡 Futures Trading Plan (Neutral Stance):

🟩 Long Entry Trigger: Look for a confirmed breakout and candle close ABOVE the resistance at $0.2380 (recent swing high) on a higher timeframe (e.g., 4H) with significant volume.

💰Targets: $0.2450, $0.2550, and potentially toward the previous resistance at $0.2700.

🛑Stop Loss: Below the breakout candle's low or below the nearest support at $0.2220, which aligns with recent lows.

🟥 Short Entry Trigger: Consider a short if the price breaks BELOW the strong support area of $0.2220–$0.2250 with a closing candle on a higher timeframe.

💰Targets: $0.2150, $0.2050, and toward the longer-term low.

🛑Stop Loss: Above the breakdown candle's high or above $0.2300.

Your Action Plan:

01 - Wait for Confirmation: Do not enter a trade until a clear breakout or breakdown is confirmed by a candle close on your chosen timeframe. The presence of a consolidation pattern means patience is key.

02 - Use a Stop-Loss: Always protect your capital. A stop-loss is essential, especially with volatile assets like MAGIC.

03 - Manage Your Risk: Consider position sizing appropriate for your risk tolerance. Do not over-leverage, given the inherent risks and the speculative nature of the pattern.

📢 What are your thoughts?

Vote: Do you think MAGIC is gearing up for a reversal or will it continue its downtrend?

Bullish Reversal

Bearish Continuation

Comment: Share your analysis below!