It is based on a price reversal from the local support zone. You can see how the price moved at this support in the past. If the buyers can keep the price above 2.614$, we will be able to see a new upward movement. The long trade has a workable risk-reward and from this point of view, it makes sense.
If you think that fundamental factors are against this coin and trade, just skip it.
Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.