Looking at the USUAL/USDT chart from Binance on a daily timeframe, I will give you a comprehensive analysis of the trends and technical indicators:
1. General trend:
• The price appears to be in an upward trend since mid-December, as there is a series of consecutive green candles, indicating a significant increase in demand for the currency.
• A sharp upward wave has been observed recently, especially with the last candle indicating a strong rise of 29.07%, and the price reached the level of 1.2213.
2. Moving Averages (MA):
• The 7-day moving average (green line) crosses the 21-day moving average (orange line) upwards, which is considered a positive signal known as a bullish crossover.
• This intersection enhances the possibility of the upward trend continuing unless there is a weakness in the momentum.
3. Relative Strength Index (RSI):
• The Relative Strength Index (RSI) is at 87.03, indicating that the market is in an overbought state.
• Levels above 70 usually indicate a possible price correction or temporary decline due to overbought conditions.
4. Trading volumes:
• A significant increase in trading volume was observed, reaching 338.839M, which is a strong indication that the buying momentum is increasing with the rise in price.
• Increased trading volumes enhance the possibility of the upward trend continuing, but beware of a possible decline when trading volumes decrease.
Main levels:
• Current resistance level: 1.2970 (last high in 24 hours).
• First support level: 0.8467 (lower green level).
• Second support level: 0.6009 (lower orange level).
Final conclusion:
• Positive scenario: If the price manages to stay above the 1.22 level and surpass the resistance at 1.2970, we could see further rise towards the 1.50 levels or higher.
• Negative scenario: Due to overbought conditions (high RSI), a bearish correction towards 0.8467 or even 0.6009 levels may occur, especially if trading volumes decrease or negative reversal candles appear.
Recommendation:
• If you want to buy, it is better to wait for a corrective decline to stronger support areas before entering.
• Risk management is important; set an appropriate stop loss to avoid potential risks from strong corrections.
