The cup & handle pattern doesn't work at resistance. You cannot use this pattern in any meaningful way at the top of a rising trend. For the C&H to be valid, it needs to happen at the end of a downtrend, near the market bottom because this is a bullish reversal pattern.
Here we have KAVAUSDT weekly up-close. August 2024 marks the lowest prices since March 2020, in more than 3.5 years. Including this strong multiple years low, we have the cup pattern forming followed by the handle. See the chart:
This is the classic cup and handle (C&H) pattern and here it is valid and can work as a reversal signal.
One signal in isolation is never enough, it needs to be coupled with 3-4 additional signals to have a strong setup. The next signal comes from the trading volume. As KAVAUSDT reached the lowest in almost 4 years, trading volume goes through the roof; the highest buy-volume ever. This is another strong signal.
We have the reversal pattern, long-term double-bottom, increasing volume, local higher low (the handle low vs the cup low) and marketwide action (the rest of the altcoins market going bullish).
There you have five signals total all supporting a change of trend. This means that soon Kava will start to grow and you know this for certain because you have the supporting data coming from the chart.
Namaste.
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