(DYDX/USDT on the 1D timeframe), here’s a technical analysis for a potential short-term trade setup:

Market Context:

The price is in a clear downtrend, forming lower highs and lower lows.

It recently broke below the support zone (purple box ~0.555–0.565), indicating bearish momentum.

The candle is currently retesting the broken support as potential new resistance (a classic bearish confirmation).

Possible Trade Setup (Short Bias):

Entry (Sell/Short):

Around $0.555 - $0.560

Wait for bearish confirmation at this level (e.g., a bearish engulfing or rejection wick on lower timeframes like 4H).

Take Profit (TP) Levels:

1. TP1: $0.520 (next minor support)

2. TP2: $0.480 (stronger support)

3. TP3: $0.420 (final support level in the zone)

Stop Loss (SL):

Above the broken structure: $0.575 - $0.580

To avoid fakeouts, place SL slightly above the wick highs of the last few red candles.

Risk-Reward Example (RR):

Entry: 0.555

SL: 0.580 (25 pips risk)

TP1: 0.520 (35 pips gain) → RR ≈ 1.4

TP2: 0.480 (75 pips gain) → RR = 3

TP3: 0.420 (135 pips gain) → RR = 5