COAI Falling Wedge Setup

📌 Pattern Overview

• COAI is forming a Falling Wedge, highlighted clearly by the two downward-sloping converging red trendlines.
• This is a bullish reversal structure, especially when it forms after a prolonged downtrend.
• Price has tapped the wedge support multiple times, showing seller exhaustion and decelerating momentum.
• The latest bounce near the lower boundary suggests early signs of accumulation.

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📉 Key Levels

Support

• $0.3438 — Major swing support + wedge bottom
• $0.5626 — Local support, currently acting as short-term demand

Resistance

• $0.9502 — First key horizontal resistance
• $1.2124 — Major supply zone / previous structural breakdown level
• $2.3780 — Full target if wedge breaks and momentum expands

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📈 Market Outlook

Bias: Bullish but breakout-dependent

• Price is coiling inside a confirmed falling wedge.
• Multiple liquidity sweeps near the lower boundary indicate seller weakening.
• If price breaks above the wedge top, momentum could accelerate sharply due to thin liquidity above.

Breakout Direction

• Upside breakout is statistically more likely with a falling wedge.
• However, a sweep-and-reversal fakeout downside is still possible before final expansion.

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🧭 Trade Scenarios

🟢 Bullish Scenario

Trigger:
• 4H candle close above the falling-wedge resistance OR clean break above 0.9502

Targets:
• TP1 → $1.2124
• TP2 → $2.3780 (full wedge breakout expansion zone)

Rationale:
• Break above wedge equals trend reversal confirmation
• Above $1.21, there’s a liquidity vacuum straight to $2.37+

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🔻 Bearish Scenario

Trigger:
• Breakdown below 0.3438 (wedge invalidation)

Targets:
• TP1 → 0.28
• TP2 → 0.20 (liquidity void + psychological)

Rationale:
• Losing the wedge bottom turns structure into continuation downtrend
• Price discovery into lower zones possible after liquidity flush

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⚠️ Final Note

Given current price behavior, volatility will likely spike once COAI chooses a direction.

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