In this trading video, Richard, CEO of altFINS, analyzes $SHIB , $PEPE , $FLOKI OKI among other assets to see if the time is ripe for an entry.
In our last video, we warned traders that the market was overbought near resistance areas and that a pullback was imminent.
Now that the market has pulled back, there are attractive swing trade opportunities for assets that are in an Uptrend and near their support levels. Richard demonstrates how to find those profitable trade setups using altFINS tools.
There are signs of trend reversal. Price had a bullish breakout from Channel Down pattern and reached our target of $2.00 for +30% gain. That $2.00 horizontal resistance also lines up with a 200-day moving average (~$2.10), which makes for a stiff resistance area. Price also got a bit overbought (RSI ~ 70).
Now we look for the right entry opportunity. We wait for price to either 1) break above $2.10 to signal resumption of Uptrend, with +23% upside potential to $2.50 next, or 2) pull back near $1.50 support for another swing trade entry with upside potential back to $2.00. Stop Loss at $1.26.
The top weekly gainers by TVL were $LDO , $AAVE and $MKR . This metric shows how much users deposit to the protocol’s smart contract (these assets are not owned by the protocol). It indicates trust in the protocol’s contract security-wise and popularity of the project.
$BTC price remains in a downtrend but there are improvements. It's broken above $60K resistance and out of Symmetrical Triangle pattern and could revisit $72K. It's now also broken through 200-day moving average ~$64K, which would signal resumption of uptrend with upside potential to $72K. Stop Loss at $59K.
Full #bitcoin☀️ analysis find on altFINS: altfins.com/technical-analysis
Crypto markets have rallied 10-40% in September. $BTC BTC is up 20% since Sep 6th. And this could be just the beginning of a year-end rally if the FED continues to cut interest rates as is expected. You might be asking yourself: “Should I chase this rally? Is it too late?” The answers are NO and NO. Don’t chase but it’s not too late. Don’t FOMO and enter trades at the wrong time. Many assets have reached overbought conditions (RSI > 70) and are near their Resistance. Hence, near-term, we would wait for pullbacks to support levels for another swing trade entry. Use altFINS tools, trade setups and VIP group to help you with trade entry and exit. But it’s not too late to profit from this bull market. It’s still in early stages! altcoins are still about 50% below their peaks in March! That means we could see 100% gains into the end of this year. Chiliz ($CHZ ) is an example of an asset that has got Overbought at Resistance of $0.07.
Clearly not the time to be buying it. We would be buyers on pullbacks near $0.055 support for another upswing to $0.07 for +25% potential gain. RSI or Relative Strength Index compares average gains on UP days versus average gains on DOWN days. RSI ranges in 0-100 but when it gets above 70, it indicates overbought territory. This is especially true when price is overbought AND approaching resistance area, like we see in the above chart for Chiliz (CHZ). Price got overbought (RSI > 70) just as it reached $0.07 resistance. RSI or Relative Strength Index compares average gains on UP days versus average gains on DOWN days. RSI ranges in 0-100 but when it gets above 70, it indicates overbought territory. Using altFINS, you can get warned of such Overbought situations. Here are three approaches: 1. Screener and Alerts: find assets that are Overbought (RSI > 70): see live results. Create an Alert for this market scan by clicking on Alert icon. 2. Signals Summary section also includes several pre-set filters that you can use to identify assets that are overbought (RSI > 70) or very overbought (RSI > 75) altFINS Signals Summary
Source: altFINS
3. Technical Analysis: Overbought at Resistance. Our trade setups have identified many coins that were flashing Overbought (RSI > 70) AND were approaching resistance. When these two indicators line up, traders beware!! A pullback is likely to occur as traders sell to take profits. You can find these in our Technical Analysis section where we maintain trade setups for over 60 major altcoins. Here are recent examples:
Source: altFINS
In summary, RSI is an extremely useful indicator for identifying Oversold (RSI < 30) and Overbought (RSI > 70) assets. Use it to your advantage for timely trade entry and exit. When RSI gets very overbought (above 75 or even 80), there is a very high likelyhood that the price will pull back, correct as traders take profit. Don’t bet left holding the bag while everyone else exits!! For more trading ideas, use our automated chart patterns, Trading Videos, Signals and Technical Analyses. For longer term investment opporutinities, check out our Coin Picks Research on altfins.com.
$FLOKI price had a bullish breakout from Falling Wedge pattern, which signaled at least a temporary bullish trend reversal and reached our near-term target of $0.00017 for +30% gain. Price got overbought (RSI > 70) at resistance, hence, we could see some profit taking. We would be buyers on pullbacks to $0.00019 support. (Set a price alert).
$PEPE trend are mixed Price is trading in a Channel Down pattern. We wait for a breakout, ideally above $0.0000091 resistance and 200-day moving average ($0.0000093), which would signal resumption of Uptrend with +15% upside potential to $0.0000113. Set a price alert.
$MKR price is in an Downtrend. After a brief rebound, price had a bearish breakout from a Bearish Flag pattern and broke below $1,750 key level from early August, making a new Lower Low, a sign of downtrend. Now it's also broke below $1,600 support.
$VET is bullish, channel down patterns: altfins.com/technical-analysis
VET price is in a downtrend, however, it had a bullish breakout from Channel Down pattern, which could signal at least a temporary bullish trend reversal with +20% upside potential to $0.27 resistance. Stop Loss at $0.19.
Price has resumed an Uptrend. Following a bullish breakout from Falling Wedge pattern, price has also broken above $0.50 and $0.62 resistance and above 200-day moving average ($0.64). However, it's getting overbought RSI > 70) and we could see some profit taking near-term. We would be buyers on retest or pull back near $0.50 key level for another swing trade entry with +20% upside potential back to $0.62. Stop Loss at $0.45.