Technical analysis of AERGO/USDT viscosity and identification of support and resistance levels
Overview:
The pair is currently in a strong downtrend, with a sharp price drop of 17.3% in the past 24 hours. Technical indicators point to weak buying power and increasing selling pressure.
Support and resistance levels:
* Nearby resistance: $0.1431. This level may act as a barrier to any attempt by the pair to rebound.
* Nearby Support: $0.1129. If the selling pressure continues, the price may reach this level.
* Strong Support: $0.1081. This level is a historical support and could provide some stability to the price if tested.
Technical indicators:
* Relative Strength Index (RSI): Currently below 30, indicating oversold territory. However, beware of false buy signals in such conditions.
* MACD and Stochastic indicators: Both confirm the strong downtrend.
Recommendations:
* Short-term trading: Due to the strong downtrend, it is advisable to avoid opening buy trades at the moment. Experienced traders can consider opening short sell trades with a stop loss order placed above the nearest resistance level.
* Long-term trading: There may be an opportunity to buy the pair at a cheaper price if the strong support level of $0.1081 is broken. However, long-term investors should closely monitor the news and fundamental analysis.
