We’ve had our eyes on the $3.20 level since last week when it had acted as solid support.
But then the price dumped below it earlier this week - total fakeout! 😠We were annoyed but knew deviations happen sometimes in charts.
The good news is, after yesterday's solid green candle close and with the wider crypto market bouncing today, DYDX is trying to reclaim that $3.20 zone again. We spotted a potential inverse head and shoulders pattern forming, which would be bullish if it follows through! 📈
There are still several hours until the daily candle close today. If we can close back above $3.20 convincingly, we might take a starter long position around there, targeting further upside.
We'll wait for confirmation of an inverse H&S breakout or additional retests of $3.20 as support before going heavier.
The next major support below the current price is around $2.70, so our stop loss would need to be below that.
R:R looking decent if that $3 zone flips back to support.
Anyway, fingers crossed! We’ll let you know how the trade goes.
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