$CHIP Technical Analysis: Capitalizing on the Liquidation Flush
The recent price action on the CHIP/USDT 1-hour chart has provided a high-probability entry for disciplined traders. After a calculated shakeout that triggered a wave of long liquidations, the market has reached a point of price exhaustion. Here is the structural breakdown of the current setup.
Support and Resistance Mapping
Immediate Support (The Floor):
After breaking below the previous consolidation,
$CHIP found aggressive buying interest at the $0.0774 level. This area now acts as our critical support. As long as we hold above this wick low, the bullish recovery remains the primary thesis.
Key Resistance (The Breakout Trigger): The price is currently battling a descending trendline that has capped gains since the $0.115 peak. A decisive breakout and candle close above $0.0820 will signal that the downtrend is officially broken, shifting the market structure from bearish to bullish.
Major Supply Zone: The blue shaded area between $0.088 and $0.091 represents the "flipped" resistance. Previously strong support, this zone will likely act as a temporary hurdle where we may see some minor profit-taking.
Price Target & Strategy
Primary Target: $0.0960. This target represents a nearly 20% move from the current lows. Strategically, this level aligns with the high-volume node where the initial breakdown began, making it a logical area for a full recovery exit.
Risk Mitigation: The heavy liquidation volume seen at the bottom suggests that the "weak hands" have been flushed out. This reduces the risk of a secondary dump, allowing for a high-conviction hold.
The Pro Verdict
By entering near the bottom of this flush and targeting the structural resistance at $0.096, we are maintaining a superior risk-to-reward ratio.
Plan the trade, trade the plan. No stress.
Note: DYOR
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