Price is currently testing a heavyweight resistance zone where a Triple Top formation is taking shape. This classic bearish reversal pattern suggests that the bulls are losing steam after three failed attempts to break higher.
Is a pullback on the horizon? Let’s look at the setup. 📊
📉 Bearish Thesis: The Triple Top
The structure on the chart shows a clear struggle at the local highs. Here is why the "Short" side looks compelling right now:
Resistance Rejection: Price has repeatedly hit a ceiling, showing that sellers are stepping in heavily at these levels to protect the zone. 🧱
Momentum Exhaustion: After the recent rally, technical indicators are hinting at a "cooling off" period. A rotation toward lower support levels would be a healthy correction in the current structure.
Volume Profile: Watch for a decrease in buying volume on this third peak—it often signals that the trend is ready to flip. 📉
🛡️ Risk Management & Strategy
Trading mid-cap alts like $POWER requires discipline. Volatility is a double-edged sword! ⚔️
Trade Element Strategic Level
Entry Zone Resistance confirmation (Triple Top Peak)
Primary Target Short-term liquidity/support areas below
Stop Loss Above the Triple Top peak (Invalidation level)
Risk Profile High (Altcoin Volatility)
⚠️ Trader’s Note: If price breaks decisively above the resistance with strong volume, the Triple Top is invalidated, and we could see a massive "short squeeze" toward new highs. Always use a Stop Loss!
🧭 What to Watch Next
Keep a close eye on the 1H and 4H candle closes. A bearish engulfing candle or long upper wicks at this resistance would provide the final "green light" for the short idea. Stay flexible and don't marry the bias! 🔄
