EIGEN/Tether
Panjang

EIGEN/USDT — Symmetrical Triangle: Breakout Imminent?

185
Summary

The daily chart shows a symmetrical triangle pattern (descending resistance from Dec–Aug and ascending support from April). Price is currently around 1.36 USDT, squeezing into the narrow apex zone — this suggests high volatility is likely once a breakout occurs. Statistically, this pattern is neutral, but the formation of higher lows since April gives a slight bullish bias. However, given the prior strong downtrend, we must not ignore the potential for a continuation to the downside.

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Technical Pattern Details

Pattern: Symmetrical triangle / contracting triangle — two converging trendlines: lower highs vs higher lows.

Meaning: Consolidation between buyers & sellers, representing accumulation/distribution before a sharp move.

Probability: Neutral — the breakout direction defines the medium-term bias. With the prior downtrend, continuation is possible, but persistent higher lows suggest ongoing demand.

Timing: Apex likely reached in Sept; breakouts often occur before or at the apex.

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Key Levels (from chart)

Current price: 1.3604 USDT

Resistance levels: 1.5788, 1.9671, 2.3877, 2.9906, 3.3557, and major high at 5.52–5.66 USDT.

Key support: ascending trendline & historical low at 0.6590 USDT.

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Bullish Scenario (Confirmation & Targets)

Confirmation:

1. Daily candle closes above the triangle resistance (~1.58–1.65 USDT, depending on precision).


2. Breakout volume is higher than average.


3. Retest holds as support after breakout.



Targets after bullish breakout:

TP1: 1.5788

TP2: 1.9671

TP3: 2.3877 → 2.9906 → 3.3557 (if strong momentum)


Example aggressive setup:

Entry: 1.62 USDT

Stop-loss: 1.30 USDT

Risk per unit = 0.32 USDT

TP1 (1.97) → ~1.09R

TP2 (2.38) → ~2.37R

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Bearish Scenario (Confirmation & Targets)

Confirmation:

1. Strong rejection at triangle resistance, followed by daily close below ascending support.


2. Increased volume on breakdown.


3. Failed retest of broken support.



Targets after bearish breakdown:

TP1: Local support zones (~1.10–0.90).

TP2: Historical low 0.6590 USDT.


Example short setup:

Entry: 1.30 USDT

Stop-loss: 1.60 USDT

Target: 0.659 USDT → ~2.14R

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Trading & Risk Management Notes

1. Wait for confirmation — avoid early intraday breakouts.


2. Retest entries for conservative trades.


3. Stop-loss placement beyond structural levels.


4. Risk per trade: 1–3% of total capital.


5. Partial scale-in if breakout shows strong momentum.


6. Beware of fakeouts — common in tightening triangles.

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Confirmation Checklist

Daily close outside trendline.

Breakout volume above accumulation average.

RSI/Stoch supports breakout direction.

Multi-timeframe alignment (e.g., 4H, 12H).

Liquidity/spread checks on exchange.

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Risk Notes

Triangles after a downtrend can be continuation patterns — don’t pre-bias without confirmation.

Use horizontal resistance levels for realistic profit-taking instead of overly optimistic measured moves.

Watch for correlated market moves (BTC/ETH).

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EIGEN/USDT (1D) forming a symmetrical triangle — volatility spike likely as breakout nears. Wait for daily close + volume above 1.58–1.65 for bullish targets (1.97 → 2.38 → 2.99), or breakdown below ascending support for bearish targets (down to 0.659). Manage risk and watch for retests.

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Penafian

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