FORTH/USDT Detailed Technical Analysis – 1D Chart
Current Price: $5.100 (+13.56%)
24H High: $5.700
24H Low: $3.466
The FORTH/USDT pair has demonstrated a strong recovery, rising by over 46% from its recent low. This move has propelled the price back into a critical supply zone ($5.50-$7.00), where sellers historically dominate the market. While the bullish momentum is impressive, this key resistance zone could act as a turning point for the trend.
Technical Breakdown and Market Insights
Supply Zone Dynamics:
The highlighted supply zone between $5.50 and $7.00 has been a significant barrier in past price action. Previous tests of this zone resulted in sharp pullbacks, suggesting heavy selling pressure. The price is currently retesting this area, making it a critical level to watch for potential rejection or breakout.Volume and Momentum:
The recent price surge is supported by a substantial increase in trading volume, which indicates strong buyer interest. However, the presence of resistance in this region requires sustained momentum for the price to break through. If buyers fail to maintain control, a retracement is likely.Potential Retracement Scenario:
If the price is rejected at the supply zone, we could see a retracement toward lower support levels at $4.50 and $4.00, where demand might reemerge. This scenario is consistent with the market’s previous reactions in this price range.Bullish Breakout Possibility:
In case of a decisive breakout above $7.00, the bullish trend could accelerate, opening the door to new highs. A breakout would signal that buyers have absorbed the selling pressure in the supply zone, creating an opportunity for further upside.
Key Levels to Monitor:
Resistance Levels:
$5.50-$7.00 (supply zone)
$7.00+ (breakout level)
Support Levels:
$4.50 (immediate support)
$4.00 (secondary support)
Trading Plan and Risk Management:
For Breakout Traders:
Wait for a confirmed breakout above $7.00 with high volume to enter long positions.
Targets for breakout trades can range from $8.00 to $9.00, depending on market strength.
Place stop-losses below $6.80 to limit downside risk.
For Rejection Traders:
If the price shows clear rejection at the supply zone, consider short positions targeting the $4.50 and $4.00 support levels.
Place stop-losses above $7.10 to protect against an unexpected breakout.
For Swing Traders:
Consider accumulating positions near $4.50 if the price retraces to support, looking for a bounce back toward the $5.50 resistance.
Market Sentiment and Outlook:
The recent price surge highlights a temporary shift in market sentiment toward bullishness, but the supply zone will be the ultimate test for further upside. A breakout above $7.00 could lead to a significant trend reversal, while a rejection may extend the bearish trend toward lower supports. Traders should stay cautious and wait for confirmation signals before committing to any trades.
Disclaimer:
This analysis is based on historical price action and market patterns. It is not financial advice. Always conduct your own research and use proper risk management when trading.
