WLDUSDT.P: short setup from daily support at 1.2027

ontem

While altcoins were rallying and BTC was attempting to break its all-time high, WLDUSDT.P just stood in consolidation, which is a sign of weakness. In my opinion, an asset that has come from above and entered consolidation will continue its move down.
I am providing the analysis now because I see a good pre-breakout base, which I interpret as a readiness for a breakdown.
And although this base is essentially "chopping" the main level (which I usually don't work with), in this case, it has formed a clear local support level just below it: two previous drops stopped at the exact same price point.
This allows me to use this specific local level as a basis to work from.

Key factors for this scenario:

• Price void / low liquidity zone beyond level
  
• Asset decoupled from the market (relative strength/weakness vs. BTC)
  
• Volatility contraction on approach
  
• Prolonged consolidation
  
• Repeated precise tests of the level
  

Factors that contradict this scenario:

• Exhaustive move (approaching from afar)
  
• Closing far from the level
  

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há 5 horas

Trade fechado: stop atingido

Although the asset moved in the predicted direction and the entry point was good, any reasonable stop-loss would have been hit.
The reason is that the breakout bar first triggered the entry, then sharply reversed to take out the stop, and only after that moved in the intended direction.
Such a trade is very difficult to execute.
Logging a systemic loss.