Failed support retest after breakdown in REQ price structure
Pattern:
A breakdown of a key support zone (horizontal or trendline) on increased volume followed by a retest attempt where price moves back to the broken zone but rejects with higher selling volume and deteriorating momentum indicators (RSI, MACD diverging).
Why it matters for REQ:
Technical structure matters more in lower-liquidity markets; a failed retest indicates sellers remain dominant and that buyers are unwilling to defend the level, leading to continuation moves and stop cascades as weak hands exit.
How to monitor:
Define multi-timeframe support levels using confluence (higher-timeframe moving averages, previous consolidation ranges, Fibonacci levels).
Watch volume profile during breakdown and retest:
A genuine reclaim will show lower sell volume on breakdown and higher buy volume on retest; a failed retest will show the opposite.
Add momentum confirmation:
Loss of bullish divergence, moving average crossovers turning bearish, and negative skew in orderflow.
Execution:
In case of failed retest, bias short or reduce long exposure; if using long trades, require confirmation via reclaim and sustained buy-side volume.
Risk controls:
Set stop placements aware of typical volatility for REQ, as false breakdowns can occur during liquidity events or block trades.
Combine technical signals with on-chain indicators to reduce false positives:
For example, a failed retest coinciding with increasing exchange inflows is a stronger bearish signal than a failed retest alone.