Based on the TF: 4hrs chart, there is a strong possibility of a bearish rectangle pattern forming.
Here is a breakdown of the pattern:
Horizontal Resistance: The price has been consistently rejected at 0.25, 0.26 to form a horizontal resistance line.
Horizontal Support: The price also found support at 0.23 and 0.22, creating a horizontal support line.
Downtrend Line: A downtrend line connects recent highs, indicating a bearish bias.
If the pattern continues to develop, the following scenarios are possible:
Breakout: If the price drops below the support level, it may indicate a major downtrend.
Breakout: If the price breaks through the resistance level, it may indicate a reversal to the upside.
False breakout: The price may test a level but then reverse, causing the current trend to continue.
Key indicators:
Volume: A decrease in volume during the formation of the pattern may indicate a weakening trend.
Moving Averages: A downward trending moving average (e.g., 50-day or 200-day) can reinforce a bearish outlook.
Relative Strength Index (RSI): An oversold RSI (below 30) may indicate a potential reversal, but it is important to consider other factors.
conclusion:
While the chart indicates a bearish rectangle pattern, it is important to wait for a clear breakout or breakdown before making trading decisions.