$SOMI transitioned into a qualitatively new state, achieving a explosive breakout from a prolonged consolidation phase. Such an impulsive breakout with high volume is not just a price movement, but a change in market regime, where previous resistance transforms into support, and the psychology of participants shifts towards buying on pullbacks.
The technical picture confirms the strength of the shift. A sharp rise from the base of $0.25 with subsequent holding of the achieved levels demonstrates that the breakout was supported by significant interest, rather than speculative liquidation. The key now becomes the price behavior relative to the new support zone of $0.275 - $0.295 — its successful retest and rebound will be the final confirmation of the structural break. Current trading above the breakout zone indicates that the market does not expect a deep pullback, but rather seeks a support point for continuing movement.
The logic is based on entering the confirmation zone of the strength of the new trend, rather than trying to catch the outgoing impulse.
Entry zone: $0.295 – $0.320. This range represents the optimal zone for entry: the area of retest of the broken level and consolidation at elevated heights, where the risk-to-reward ratio is most favorable.
Targets:
· TP1: $0.335 (testing the first level of new resistance).
· TP2: $0.350 (consolidation above the psychological mark and movement towards the next barrier).
· TP3: $0.380 (trend expansion to capture higher liquidity).
Stop-loss: Below $0.265. Closing the price below this level will mean that the breakout was false, and the market returns to the previous range, completely nullifying the bullish hypothesis.
The true strength of the breakout is measured not by the height of the candle, but by the ability to hold the conquered territory. A market that does not give back gains after the impulse demonstrates a qualitative change in the balance of supply and demand.
What will you pay attention to as the main signal of a successful retest of support: the formation of a specific bullish candlestick model (for example, a pin-bar) at the level of $0.295 or a sharp decrease in sales volume as it approaches this zone?