## Analysis of Japanese Candlestick Patterns
*In mid-October**: A bullish engulfing candle appears around the price of 0.38 - a signal of a reversal of the bearish trend - a medium strength signal
*Around 11-06**: A double top pattern forms at approximately 0.47 - a strong bearish signal - recently broken
*Around 11-28**: A hammer candle appears at the level of 0.21 - exhaustion of the bearish trend and a potential beginning of a bullish reversal - a strong signal
*Last Candle**: A long green candle with a long lower shadow at 0.37222 - indicative of buyer strength and regaining control - strong bullish signal
## Technical Indicator Analysis
*MACD Indicator**:
- Current MACD Value: -0.00221
- DEA Signal Line: 0.00076
- DIF Difference: -0.00144
- The indicator shows convergence between the lines with the beginning of a potential bullish crossover - weak bullish signal
*Trading Volume**:
- Large trading volume during the last green candle (1.5 million USDT)
- Supports the current upward price movement
## Identifying Support and Resistance Levels
*Support Levels**:
- Strong support: 0.21 (hammer zone where the long green candle formed)
- Medium support: 0.28 (lowest level in the last 24 hours)
*Resistance Levels**:
- Near resistance: 0.39 (previous trading zone)
- Medium resistance: 0.47 (previous peak)
- Strong resistance: 0.51 (highest level on the chart)
## Overall Technical Assessment
*Volume and Price Formatting**: Increasing trading volume with rising price in the last candle indicates the strength of the new bullish trend
*Market Direction**: After a downward trend, it seems that the market is witnessing a potential bullish reversal
*Summary of Indicator Signals**: Technical indicators show the beginning of a positive shift in momentum
## Conclusion
The MERL/USDT pair shows a potential reversal after a sharp decline. The last strong green candle with high trading volume indicates buyer interest. Traders may look for buying opportunities with stop-loss orders placed below the support level of 0.21. However, caution is advised as technical indicators remain in a neutral zone, and the bullish trend may continue to be confirmed by breaking the resistance level of 0.39.
