The pattern shown in the chart is a "Cup and Handle" pattern, and it seems that the general conditions for this pattern have largely been met. Let me clarify the analysis step by step:
✅ Pattern components confirmed:
1. Cup:
There is a clear circular bottom from the 67.86 area to 19.43, then a gradual rise to 48.97.
The shape resembles a semicircle, which aligns with the characteristics of a cup.
2. Handle:
After reaching 48.97, a corrective movement appeared, either sideways or slightly downward, resembling a "handle," and this is a typical accumulation area.
The price is currently at 41.07, which is within the handle area.
3. Resistance level:
The cup top is around 48.97, which is a critical resistance level.
Breaking this resistance will confirm the pattern.
✅ Technical conditions met:
RSI: At 36.92, in the area of near oversold, indicating a potential rally if momentum appears.
Parabolic SAR: Still giving a bearish signal (the dots are above the price), but it may change with strong bullish candles.
MACD: Going through a corrective phase but no bullish crossover yet.
Stochastic RSI: Also in oversold territory, supporting the idea of a potential reversal.
📌 Technical decision:
✅ The pattern has been completed by approximately 90%, but the resistance line has not been breached yet (48.97).
We need:
Strong green candle with a clear breakout above the 48.97 level.
High trading volume at the breakout.
Confirmation from momentum indicators (RSI rising above 50, and MACD giving a positive crossover).
🎯 Targets after confirming the pattern:
If 48.97 is breached, the first target according to the cup depth measurement is:
Cup bottom = 19.43
Cup top = 48.97
Difference = approximately 29.5 dollars
Technical target = 48.97 + 29.5 ≈ 78.5 dollars
🔔 Alert:
If the 48.97 level is not breached and the price continues to move horizontally or drops below $38, the pattern is considered partially failed and may retest support areas.
