Technical analysis:
1. General trend:
• The current price shows a strong upward trend, as it is
Trade above all important moving averages (EMA 7, 25, 99).
• This indicates a long-term positive momentum, with support.
Strong in the short and medium term.
2. Relative Strength Index (RSI):
• An RSI reading between 63 and 66 means the market is overbought but not yet oversold. If the RSI rises above 70, we may see some correction or slowdown in the upside.
3. MACD Indicator:
• Indicates bullish momentum, as DIF is higher than DEA, meaning there is buying power supporting the current uptrend.
4. Stochastic RSI:
• StochRSI is close to the overbought zone (75), indicating that the price may need a short-term correction before resuming the rise.
Recommendations and potential deals:
Long trade:
• Entry: You can enter a buy trade at the level of 0.1544 or at any slight pullback to the EMA 7 line at 0.1462 as support.
• Price Target: Target 0.1700 as an initial target. If this level is broken, 0.1750 or higher can be targeted.
• Stop Loss: Place a stop loss at 0.1430 (below the 25 EMA line) to protect against any bearish breakout.
Short Hedging:
• Entry: If the support level 0.1462 (EMA 7) is broken strongly, a sell trade can be entered with a target of 0.1309 (EMA 25) as an initial target.
• Stop Loss: Place a stop loss just above the 0.1500 level to hedge against any unexpected bounce.
General note:
• Caution level: If you see the RSI reaching levels close to 70 or above, and this may coincide with the price reaching a strong resistance such as 0.1700, this indicates a possible correction, making this a good point to take profits or hedge the trade.
• Capital Management: It is preferable to use a risk-to-reward ratio of at least 1:2 in these trades to reduce risks and increase the chances of success.
Final advice:
Remember that cryptocurrencies are very volatile, and it is best to monitor the market regularly and adjust your stop loss and target based on the current price action. It is also important not to risk more than you can afford to lose.
