When Moving Averages Meet the Demand Zone

One of the simplest ways to identify the market trend is by using the moving average (MA) indicator.

• When price moves above the MA, it's generally considered an uptrend.
  
• When price moves below the MA, it's seen as a downtrend.
  

Aside from showing the trend, moving averages can also act as dynamic support and resistance:

• In an uptrend, the MA acts as support — meaning if price retraces into the MA, it often bounces back and continues upward.
  
• In a downtrend, the MA acts as resistance — price tends to reject the MA and move lower.
  

In WIFUSDT, the moving average is currently acting as support, and price is pulling back into a confluence zone between 0.584 – 0.558, where the MA meets a demand zone. This setup increases the probability of the pullback ending and the uptrend continuing.

The confirmation for a bullish continuation would be a break and close above 0.620.
If that happens, the next target zone is between 0.763 – 0.789.

Keep a close eye when price approaches the previous high. The ideal scenario is a strong impulsive breakout. The worst-case scenario would be a rejection or false breakout from that level.

Alright, what's your take on WIFUSDT?