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Three resistance levels stand between bulls and breakout Three resistance levels stand between bulls and breakout

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Three resistance levels stand between bulls and breakout – Crypto News

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Rivian Automotive (RIVN), the electric vehicle manufacturer focused on adventure-oriented trucks and SUVs, has staged an impressive comeback from its December lows. But the real test for bulls lies directly ahead, where three distinct resistance levels are now stacked like hurdles on a track.

Trading at $21.38 after pulling back 2.62% today, RIVN finds itself in an intriguing spot. The stock has climbed roughly 65% from its mid-December base around $12-13, a rally that’s caught the attention of momentum traders and EV enthusiasts alike. What strikes me here is the clarity of the resistance structure overhead—three well-defined levels that tell us exactly where the battles will be fought.

The first resistance sits at $22.83, just $1.45 above current price. This level has proven significant in the past, and it’s now the immediate obstacle for bulls looking to extend this recovery. Think of it as the first gate—break through here with conviction, and the path opens to the next challenge.

That next challenge arrives at $24.86, the second resistance level. Clearing this zone would represent a substantial psychological victory, pushing RIVN roughly 17% above current levels and signaling that the recent momentum isn’t just a fleeting bounce.

The ultimate prize? That sits at $28.05, the final level of resistance marked on this chart. Reaching this target would represent a clean 32% gain from current price and would likely confirm a legitimate reversal of the stock’s prolonged consolidation pattern throughout 2024.

So, what does this mean for traders? The bullish case is straightforward: if RIVN can reclaim $22.83 and hold it as support, the next two levels become realistic targets. Aggressive traders might look for entries on dips toward the $20-21 zone, using a stop below $19 to manage downside risk.

The bearish scenario is equally clear. Failure to break through $22.83 after multiple attempts could signal exhaustion, potentially sending the stock back toward the mid-teens. Volume will be telling. Watch for declining volume on rallies, which would suggest fading interest.

What makes this setup particularly educational is the ladder-like structure of these resistance levels. Rather than one massive ceiling, we’ve got three distinct checkpoints. Each successful breach would likely attract fresh buying interest, while each rejection might trigger profit-taking from earlier entries.

The market always has the final word, and RIVN’s ability to convert these resistance levels into support will determine whether this recovery has legs or runs out of gas.

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