Analysis of $THE/USDT on the 4-Hour Timeframe

Current Trend:

The chart reflects a pronounced bearish trend, with the price plummeting by approximately 26.24% over the last 24 hours. Momentum indicators suggest sustained selling pressure, favoring a continuation of the downtrend.

Support and Resistance Levels:

Support: The key support level is observed around $1.55 (24-hour low). A break below this level could lead to further downside.Resistance: Resistance is near $2.48 (24-hour high), a critical barrier for any upward movement.

Long Position Strategy:

Consider entering a long position if the price rebounds above $1.90 with strong trading volume, indicating a potential trend reversal.

Stop Loss: $1.50

Target: $2.20,with an extended.

target at $2.50 if bullish momentum sustains.

Short Position Strategy:

A short position aligns better with the current trend, particularly if the price breaks below $1.75, accompanied by increasing selling pressure.

Stop Loss: $1.90

Target: $1.60

initially, with an extended target at $1.40 for deeper bearish continuation.

Market Sentiment:

The prevailing sentiment favors short trades, as the 4-hour candlestick pattern reflects sharp declines. However, traders should closely monitor for potential reversal signals such as bullish divergence or strong volume surges.

Caution: Implement strict risk management practices, as high volatility may lead to rapid and unpredictable price movements.