Did you buy a cryptocurrency and wonder: Will I profit? Should I sell now or hold?
In this article, we will take you step by step to understand how to monitor currencies after purchase, what signs indicate that the currency will rise or fall, and how to act wisely.
๐ First: Why should you monitor your currency after purchase?
Many beginners buy a currency and leave it without follow-up, which is a common mistake.
The cryptocurrency market moves quickly, and sometimes a currency rises 100% in an hour, then suddenly drops.
Therefore, following up after purchase is not an option... but a necessity.
๐ How do you know if the currency may rise?
Here are the main signals indicating the possibility of the currency rising:
โ 1. Increase in trading volume
If you notice that the daily trading volume of the currency has suddenly increased, this indicates new interest in it.
People are entering... demand is increasing... and the price may rise afterwards.
โ 2. Consecutive green candles on the chart
On trading platforms like Binance, monitor the chart.
If more than one consecutive green candle appears, especially in a 15-minute or hourly interval, this is a signal for an upward trend.
โ 3. Positive news or announcements
If news appears about a new partnership, listing on a platform, support from influencers...
All these factors often lead to a price increase.
โ 4. Breaking strong resistance
If the price surpasses a certain level that has been a barrier for a while, it will likely advance further.
This is called 'breaking resistance', and it is a strong signal for an upward movement.
๐ How do you know if the currency may drop?
Pay attention to these warning signs:
โ ๏ธ 1. Appearance of long red candles after a rise
If you suddenly see a large red candle after a series of rises, this may be the start of a price correction or a crash.
โ ๏ธ 2. Rapid drop in trading volume
A decrease in the number of buyers means that the market is starting to cool down, which may be followed by a price drop.
โ ๏ธ 3. Sharp movement followed by a stop
If the price rises suddenly and then freezes, without continued buying, it may be a false move from whales, followed by a rapid drop.
โ ๏ธ 4. RSI reaching the 'overbought' area
The RSI indicator, if it reaches above 70, the currency has likely risen too much and may be subject to correction.
๐ What is price correction? And why does it happen?
Price correction is a temporary decline that happens after a significant rise.
For example, if a currency rises 100%, it is normal for it to drop 20-30% for some time.
Why?
Because people sell to take their profits. The market needs to 'rest' before continuing to rise.
But!
If the correction is too violent or lasts too long, it may not be a correction... but the beginning of a long decline.
๐ง What precautions should every trader know?
Do not enter a large amount all at once; distribute your entry over stages.
Do not get attached to one currency; look for alternatives.
Set a clear goal: How much do you want to profit? And how much are you willing to lose?
Do not be greedy. The market does not forgive the greedy.
Monitor the news and follow technical analysis channels.
If your currency reaches your target, do not hesitate to sell even if the market continues to rise.
๐ฏ Summary for beginners:Buy wisely, monitor bravely, and take your profits calmly.
Do not wait for the market to tell you when to exit... be the one who decides.
Cryptocurrencies are a great opportunity, but they do not forgive those who sleep.
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Thank you for your time and trust, and we wish you continued success and achievement in your investment journey.
