The 4-hour chart trend presents a bullish consolidation, with prices repeatedly finding support above a clear demand area. After experiencing two significant upward movements and pullbacks, the market has entered a sideways consolidation phase, but the bottoms are continually rising, indicating potential buying strength.
In terms of trigger signals, the current price is rebounding from the lower boundary of the consolidation range, suggesting that the Relative Strength Index (RSI) on smaller timeframes like the 1-hour is likely breaking above the 50 midline. This behavior typically signals that short-term momentum is shifting from bearish to bullish, providing an early signal for further upward movement. The price is also attempting to stay above the key short-term Exponential Moving Average (EMA); if successful, it will confirm the validity of the support.
Entering now is a high-probability setup, as we are operating above a validated support level. The price has not broken below the $0.34 area, indicating seller momentum is waning. The logic of this trade is to capture swings from the bottom of the consolidation range to the supply area at the top. The risk-reward ratio is favorable, with a stop loss set below the recent support structure, while the potential profit target points towards the supply area near previous highs.
Executable trade setup ([Long])
Entry: Market price 0.37705
Take profit 1: 0.43223
Take profit 2: 0.48740
Stop loss: 0.34027
$MERL
$PIEVERSE
