Based on the attached image, which shows the movements of the ERA/USDT pair on a 5-minute timeframe, here is my quick technical analysis and advice regarding entering the trade:
📉 Important technical notes:
1. Current price: 1.3500
2. Recent drop: The price has declined from approximately 1.42 to 1.35.
3. RSI Indicator (6):
= 18.36 (Strong Oversold Area = Oversold)
This means the price is oversold and we may witness a potential upward bounce.
4. Current candles: Short red candles with a decrease in negative momentum.
5. Nearest visible support: 1.2949
6. Nearest visible resistance: 1.3712 then 1.3987
✅ Recommendation:
✅ Trade type: Buy (LONG)
Because RSI is below 20 (Oversold), there is a possibility of a technical bounce in the coming hours.
🎯 Entry plan:
Entry: Now or at a better price between 1.3450 – 1.3500
First target (TP1): 1.3710
Second target (TP2): 1.3950
Stop loss (SL): 1.3200
⚠️ Additional notes:
If the price continues to decline below 1.3200, the buying idea will be canceled and the trend will clearly turn bearish.
Make sure to monitor the volume and changes in momentum on RSI or MACD.
It is advisable to manage capital and not enter the trade with a large amount amidst market fluctuations.