Analysis of the Converging Triangle Model (THE/USDT)
The trading pair THE/USDT is forming a converging triangle pattern on the 4H timeframe, a sign that the market is in a consolidation phase before a strong breakout.
Key features:
• Decreasing resistance line: Price is under pressure from selling forces.
• Increasing support line: Buyers are pushing the price up, creating opposing pressure.
• Trading volume: Decreasing within the triangle, indicating market hesitation.
Potential scenarios:
1. Bullish breakout: If the price breaks above the resistance line (area 1.64-1.65) with high volume, the price target could reach the range of 1.90 - 2.00 USDT.
2. Bearish breakdown: If the price falls below the support line (area 1.50), the target for decline will aim towards 1.30 - 1.20 USDT.
Trading strategy:
• Entry point: Wait for a clear breakout accompanied by high volume.
• Stop loss: Set below the breakout point by 3-5%.
• Take profit: Based on the height of the triangle (approximately 0.50 USDT).
Be patient and wait for a clear signal before taking action to optimize profits and effectively manage risks. #the
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