Current movement analysis:
General trend:
We have been observing a clear upward trend since early November, as the coin has witnessed a strong upward wave. After reaching the level of around $2.65, the price began to fluctuate in a sideways range between $2.40 and $2.60. This fluctuation indicates a state of profit taking or building new buying positions.
Japanese candles:
The candles are showing clear volatility with upper and lower shadows, indicating hesitation between buyers and sellers. The support levels at $2.40 seem to be holding so far. If this level is broken, a downward correction towards $2.20 may occur.
Trading volume:
We notice that the trading volume has gradually started to decline compared to the period that witnessed the strong rise. Weak trading volumes may mean
Current bullish momentum is weakening.
Technical indicators:
SMA 9: The price is still above the simple moving average, which is positive in the short term.Indicator
Relative Strength Index (RSI): Expected to be close to overbought levels (>70), which may indicate an imminent correction.
Expectations:
Up: If the coin breaks the resistance level at $2.60 with a strong daily close, it is likely to target the $2.80-$3.00 level. Down: If the support level at $2.40 is broken, the coin may drop to test the $2.20 and then $2.00 levels.
Recommendations:
For short term speculators:
Buy at support $2.40 with stop loss below $2.35. Partially sell at resistance $2.60 or $2.80.
For long term investors:
Watch the price at $2.20 - $2.40 levels to buy back. Continue investing as long as the price remains above $2.00.
Note: Financial markets are volatile, and risk management should always be relied upon.
