đ Chart Pattern and Price Structure Analysis
This chart illustrates a well-formed descending channel (parallel falling channel) that has been developing since mid-January 2025. Currently, the price is approaching the upper boundary of this channel â a key decision area.
đĄ Technical Pattern
Descending Channel: This pattern is characterized by a series of lower highs and lower lows, representing a medium-term bearish trend.
The price is now testing the upper resistance of this channel, a crucial point that could either trigger a breakout or result in another rejection.
đ Bullish Scenario
If the price successfully breaks out above the upper trendline (around $152â$154), several resistance targets come into play:
1. $164.5 â A minor horizontal resistance and key psychological level.
2. $182.2 â A strong historical resistance zone.
3. $210â$217.8 â A previous consolidation/resistance zone.
4. $237.7, then $261â$280 â Key bullish targets if momentum sustains.
5. Ultimate target near $295.1â$295.7 if broader market sentiment remains strong.
đ Bullish Confirmation:
Valid daily candle breakout above the channel.
Strong breakout volume.
Successful retest of the breakout area as new support.
đ Bearish Scenario
If the price fails to break above the channel and gets rejected, we may see a continuation of the downtrend with potential moves to these support levels:
1. $140â$138 â Current minor support zone.
2. $128 â Recent consolidation support.
3. $115.5 â Major support from April.
4. $95.2 â The lowest support zone on the chart.
đ Bearish Confirmation:
Strong rejection candle (e.g., bearish engulfing) from upper channel.
Weak breakout attempt with declining volume.
Break below the lower channel support or creation of a new lower low.
đ Conclusion
The current setup is a classic descending channel, indicating a strong mid-term bearish structure.
Price is now at a make-or-break zone â a breakout could signal a trend reversal, while a rejection could extend the current downtrend.
Traders should wait for a confirmed breakout or clear rejection before entering a position.
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