Shadow TokenLong
SHDWUSD 12/13/2024
SHDWUSD 4HR Chart Analysis
Overview:
• Release Date: Mid-April 2024 (Coinbase).
• Initial Trend: Entered a step-down downtrend from release through October 2024.
• Current Context: Found a potential floor at the beginning of November 2024, followed by a sideways movement during the month, suggesting accumulation.
Pattern Formation:
• Reversal Pattern: Price formed a Double Bottom or Cup and Handle pattern during November.
• Breakout Confirmation:
o December 4-5: Price broke through the neckline of the reversal structure.
o Indicators: Increased momentum, MACD crossing above its signal in bullish territory, and a spike in volume confirmed the breakout.
Recent Price Action:
• After the breakout, the price consolidated, forming a Bull Flag pattern.
• December 13th: Price broke out of the bull flag, pulling back to its previous resistance level, now acting as support, along with the 20-day EMA. This presents an excellent entry opportunity.
Trade Setup:
• Entry: $0.949
• Stop-Loss: $0.783 (-17.49%)
• Target: $2.124 (+123.81%, 7.08 RR Ratio)
Summary:
SHDWUSD shows strong bullish signals with confirmed breakout patterns (Cup and Handle, Bull Flag). With support from the 20-day EMA and MACD momentum, it offers a high-potential long trade setup.
Overview:
• Release Date: Mid-April 2024 (Coinbase).
• Initial Trend: Entered a step-down downtrend from release through October 2024.
• Current Context: Found a potential floor at the beginning of November 2024, followed by a sideways movement during the month, suggesting accumulation.
Pattern Formation:
• Reversal Pattern: Price formed a Double Bottom or Cup and Handle pattern during November.
• Breakout Confirmation:
o December 4-5: Price broke through the neckline of the reversal structure.
o Indicators: Increased momentum, MACD crossing above its signal in bullish territory, and a spike in volume confirmed the breakout.
Recent Price Action:
• After the breakout, the price consolidated, forming a Bull Flag pattern.
• December 13th: Price broke out of the bull flag, pulling back to its previous resistance level, now acting as support, along with the 20-day EMA. This presents an excellent entry opportunity.
Trade Setup:
• Entry: $0.949
• Stop-Loss: $0.783 (-17.49%)
• Target: $2.124 (+123.81%, 7.08 RR Ratio)
Summary:
SHDWUSD shows strong bullish signals with confirmed breakout patterns (Cup and Handle, Bull Flag). With support from the 20-day EMA and MACD momentum, it offers a high-potential long trade setup.
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