Here Is How The DEFI-Index Can Manage A Continued Stabilization!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at the DEFI-Index daily timeframe perspective, the recent events, the current formational structure, what we can expect the upcoming times and how to possibly handle the situation appropriately. The DEFI-Index was in a strong protracted downtrend where bearish pressure almost exaggerated to the point where it has now formed this major descending-triangle-formation that already confirmed with a bullish move above the upper-boundary in which it is now testing the 40-EMA from where supply can enter the market anew, to fully validate the massive descending-triangle-formation it is highly important for the index to show up with the proper price-action, therefore I detected all the important levels and likely outcomes we should consider at the moment.

Looking at my chart you can watch there the index just testing right away the 40-EMA in red where the 60-EMA in green lies above, besides that the index has the volume-profile-resistance also in that level marked in my chart with the red dashed line, taking these factors into consideration the index will have a hard time to go above these levels and it is more likely that the index firstly shows a pullback from here visiting lower levels, this pullback will go on and it can also be a possible confirmation of the descending-triangle-formation when the index manages to bounce within the blue confirmational-cluster, this price-action will fully activate the descending-triangle-formation and the index has the possibility to gain strength before a new test of the upper resistance can occur which is possible to move above then. The index is in a situation where it has to show how it manages to bounce from the upper boundary to the upside to finally form a possible breakout above the strong resistance, when such price-action can establish here the index will point to the middle-term-target at around 2450 marked in blue in my chart, when the index reached this level it has to be elevated if there can come a possible continuation or firstly a reversal visiting lower levels before, which is not far away aground of the overbought conditions the index will move in when approaching this level.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
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Information provided is only educational and should not be used to take action in the market.