Analysis of the current trend (considering the correction)
* Strong surge and overbought: As we see in the 4-hour chart, the price surged very quickly. This surge caused the RSI indicator (which measures market strength) to reach 88.72. This number indicates that the asset is "overbought" and the market is saturated with sellers. This suggests that a downward correction is very close, and the drop we are currently witnessing is likely the start of it.
* MACD indicator: Although MACD still shows an upward trend (the green line above the red), we need to monitor it closely. With the current drop, the green line may start to dip below and cross the red line, which signals a potential trend reversal.
* Trading volume: That big surge was accompanied by a large trading volume. Now in the correction phase, we need to see if the trading volume decreases, which indicates that the correction is temporary.
Support and resistance points
* Resistance (areas that stop the price from rising):
* Nearby resistance: The current price (around $0.1807) and slightly above. If the price tries to rise again, this area will serve as resistance.
* Strong resistance: The highest point the price reached is $0.1945. This point is currently the most important resistance, and it is difficult for the price to easily surpass it during the correction phase.
* Support (areas that stop the price from falling):
* Nearby support: The first important support is $0.1714. If the price reaches it and bounces back, the correction could be short.
* Strong support: The most important support you should monitor is $0.1584. This point was previously strong resistance, and now in the correction phase, it is expected to turn into strong support.
* Key support: If the correction becomes very deep, the price may return to the point where the upward trend started, which is $0.1380. If the price breaks this support, it means the upward trend has failed.
When to buy and when to sell?
Buying (be very cautious):
* Don't buy now: Buying in this correction phase carries a lot of risks. It is still unclear where the drop will stop, so it is better not to buy now.
* Be patient until a rebound appears: The best way is to wait until the price reaches a strong support area and shows signs of rising again. You might consider buying if:
* The price has reached one of the main support areas like $0.1714 or $0.1584.
* You see candles starting to give upward signals (for example, a strong bullish candle).
* Make sure that momentum indicators (like MACD) have started giving signals of an upward trend again.
Selling (to collect your profit):
* Excellent selling opportunity: If you bought at a low price, this correction phase is a golden opportunity to take your profits (Take Profit). The current price (around $0.1807) is a good point to sell part of your holdings.
* Sell if the price fails to rise: If the price reaches some resistance (like $0.1807 or $0.1945) and fails to surpass it, this is another signal to sell and lock in more profit.
* Use stop loss: If you bought recently, it is crucial to place a stop loss order below support areas to protect your money if the correction becomes very deep.
Summary:
Since the market is in a correction phase, your priority should be to monitor support areas, not to buy. The best buying opportunity will be when the price clearly rises from some support level (regarding $0.1584), and after the correction stops. Now, you should focus on taking profits if you have gains.
