SUSHIUSDT appears to have formed an "M" pattern, which is often considered a bearish reversal pattern. In this pattern, there are two peaks, forming the letter "M," with a neckline connecting the two troughs.
As per Plancton's trading principles, a potential bearish scenario could be as follows:
Neckline Test: The price has tested the neckline, which is around the $0.6 area. This is not only a technical level but also a psychological one, as you mentioned. A breach below this level could be a significant signal.
Break of Support: If the price manages to break below the $0.580 support level, it could indicate a shift in market sentiment towards the bearish side. Breaking this support level is often seen as a confirmation of the bearish pattern.
Price Target: The next potential target, as per your description and Plancton's rules, could be around $0.54. This is often calculated by measuring the height of the M pattern from the neckline to the highest peak and then projecting it downward from the breakout point. In this case, it suggests a potential move to the downside.
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Follow the Shrimp 🦐
Keep in mind.
As per Plancton's trading principles, a potential bearish scenario could be as follows:
Neckline Test: The price has tested the neckline, which is around the $0.6 area. This is not only a technical level but also a psychological one, as you mentioned. A breach below this level could be a significant signal.
Break of Support: If the price manages to break below the $0.580 support level, it could indicate a shift in market sentiment towards the bearish side. Breaking this support level is often seen as a confirmation of the bearish pattern.
Price Target: The next potential target, as per your description and Plancton's rules, could be around $0.54. This is often calculated by measuring the height of the M pattern from the neckline to the highest peak and then projecting it downward from the breakout point. In this case, it suggests a potential move to the downside.
–––––
Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.