$COW /USDC BEARISH REVERSAL SETUP – SHORT OPPORTUNITY

Market Structure:

COW/USDC is trading inside a broader corrective phase after a strong upside expansion. Price is facing rejection from a well-defined supply zone, indicating weakening bullish momentum. Failure to sustain above resistance suggests sellers are stepping in, increasing the probability of a pullback toward lower demand levels.

Technical Confluence:

Price rejected from key resistance zone

EMA and MA acting as overhead resistance

Bollinger Bands showing contraction after expansion, hinting at a retracement

Momentum indicators losing strength near the top

Volume declining on upside moves, signaling exhaustion

Trade Plan (SHORT):

Entry Zone: Near the resistance / supply area

Targets:

TP1: 0.2380 (minor demand)

TP2: 0.2320 (strong support zone)

TP3: 0.2250 (range low extension)

Stop Loss: Above the invalidation level at 0.2485

Market Expectation:

As long as price remains below the resistance zone, further downside toward lower support levels is expected. A breakdown below demand can accelerate bearish momentum.

Risk Management:

Limit risk to 1–2% per trade, avoid over-leverage, and trail stop loss once TP1 is secured to protect capital.