One of the many cryptocurrencies is currently showing signs of consolidation within a symmetrical triangle pattern, a technical formation that could signal a significant price move in the near future.
According to recent analysis shared by Ali (@ali_charts), this consolidation phase of Maker (MKR) could lead to a potential price move of up to 30%, making $MKR one to watch in the coming days.
Understanding the Symmetrical Triangle Formation
A symmetrical triangle is a chart pattern that typically forms when the price of an asset is consolidating between two converging trendlines, one descending (resistance) and one ascending (support). This pattern suggests that neither the bulls nor the bears are in complete control, and the market is waiting for a breakout. Once the price breaks out of the triangle, it often leads to a substantial price move in the direction of the breakout.
In the case of $MKR, the chart shared by Ali reveals that the price is nearing the apex of the symmetrical triangle, where volatility often increases as the price is squeezed between the converging lines. Given the pattern’s historical reliability, the breakout could lead to a swift and powerful move—potentially as much as a 30% change in price, depending on which direction the breakout occurs.
Key Levels to Watch
Looking at the chart, it’s evident that $MKR has been moving within this symmetrical triangle for several weeks, with a series of higher lows and lower highs. The chart also highlights significant Fibonacci retracement levels, providing crucial insight into potential breakout points. For traders, monitoring these key levels is essential to gauging the strength of the breakout and determining entry and exit points.
The current consolidation in the symmetrical triangle indicates that a big move could be imminent. If $MKR breaks to the upside, the price could quickly target the next significant resistance levels. Conversely, a breakdown could lead to a sharp drop toward support levels.
Why This Pattern Matters
Symmetrical triangles are particularly useful for traders because they help identify periods of consolidation before a big move, allowing for more precise positioning in the market. The potential 30% price move suggested by Ali’s analysis is an exciting opportunity for those looking to capitalize on a potential breakout.
However, it’s important to note that while symmetrical triangles often result in significant price moves, they don’t guarantee direction. Traders must remain vigilant and be ready for either scenario: a bullish or bearish breakout.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/this-altcoin-could-see-a-30-price-surge-as-it-consolidates-within-symmetrical-triangle/