The daily chart shows that after a significant decline, the price is consolidating near the critical $40 area, indicating potential bottoming signs. Although the price is still below the major EMA moving averages, the long-term oversold condition creates the conditions for a potential mean reversion rebound. The price is currently finding support near the lower band of the daily Bollinger Bands, increasing the likelihood of a rebound towards the middle band (around 48.60).
The trigger signal appears on the 1-hour chart. The price is forming a higher high and a higher low, suggesting that the short-term downtrend may be reversing. The key entry signal is that the 1-hour RSI indicator is attempting to decisively break above the 50 midline. Once the RSI successfully stands above 50, it will confirm that short-term buying momentum is strengthening, which is a strong early signal indicating the price is ready to test higher timeframe resistance levels (such as the daily EMA7 and EMA25).
The logic for entering now is based on capturing an early stage of a potential bottom reversal. After significant overselling and consolidation on the daily chart, a shift in momentum on the lower timeframe (1-hour) is a high-probability entry signal. By entering when the RSI breaks above 50, we can enter the market at a favorable risk-reward ratio before a broader confirmation of the upward trend, with the target being to retest the key moving averages on the daily chart.
Actionable Setup Now (LONG)
Entry: market at 41.62
TP1: 43.70
TP2: 48.50
TP3: 57.10
SL: 38.90
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