DENT - Potential Price Reversal at Golden Pocket and FVG Zone

29 Mac

In this TradingView chart for the DENT/USDT perpetual contract on the 4-hour timeframe, the current price action is being analyzed with a focus on key Fibonacci and market structure levels that indicate potential price movement. Below is an extensive description of the setup:

1. Golden Pocket Support Zone:
- Highlighted in yellow, this area represents the golden pocket derived from a significant upward trend. The golden pocket, located between the 0.618 and 0.65 Fibonacci retracement levels, is known as a high-probability reversal zone.
- The price recently reacted off this level, signaling potential bullish interest in the zone.

2. Fair Value Gap (FVG):
- The blue zone above current price action highlights an unfilled Fair Value Gap (FVG) left behind during the prior downtrend. This area, located near 0.00078, may act as a potential liquidity target if the price begins to retrace upward.
- The Fibonacci retracement is also drawn, intersecting with this zone, reinforcing its significance as a key resistance area.

3. Potential Scenarios:
- Bullish Retracement: The green path anticipates a short-term upward move where the price may climb toward the FVG resistance zone. This move could align with traders looking to target the imbalance created by previous price action.
- Bearish Continuation: The red arrow outlines the scenario where price, after testing the FVG, resumes its downward trajectory, breaking through the golden pocket and continuing its bearish trend.

4. Technical Overview:
- The chart shows clear evidence of a prior bearish trend, with current price action suggesting a temporary pause or reversal. Traders should monitor price behavior around the golden pocket and FVG zones for confirmation of either scenario.
- Breakdowns below the golden pocket could indicate further downside momentum, while breakouts above the FVG might suggest a shift in market sentiment.

This setup provides a roadmap for potential price action and highlights critical levels for traders to watch for entry, exit, and risk management.

29 Mac

Dagangan aktif

Bears looking too strong! DENT seems to just follow BTC...