Technical analysis:
Price Action Pattern:
The currency has seen a sharp rise recently, followed by a pullback that is considered a natural corrective move.
The last candle shows a slight positive movement (bullish close) which may indicate a temporary stabilization.
Volume:
There is a significant increase in trading volume, showing investor interest in the currency.
If the volume in an uptrend is greater than the volume during a correction, this indicates a possible downtrend.
Resuming the upward trend.
Moving Averages (SMA):
If prices are above the 50-day moving average, the overall trend is still up.
If prices break below this average, there may be a bearish reversal.
Support and resistance levels:
Strong support: near $0.30 (matches the low of the last correction).
Strong resistance: at $0.40 (previous local high).
RSI (Relative Strength Index):
If the RSI is close to 50, it means that the market is currently balanced.
An RSI break above 70 indicates an overbought area, while a break below 30 indicates an oversold area.
Expectations:
Ascent scenario:
If the price can hold above the $0.30 support level with increased trading volume, we may seeA new attempt to test or even surpass the $0.40 level.
Landing scenario:
If the price breaks the $0.30 support level with high trading volume, the price may decline towards $0.25 or lower.
Recommendations:
For the short-term investor:
Buy entry if resistance of $0.32 is broken steadily (with stop loss at $0.30).
Sell if support $0.30 is broken.
For the long-term investor:
Hold the coin as long as the price is above $0.25, while monitoring technical indicators.
Risk management:
Use a risk/reward ratio of at least 1:2.
Avoid risking more than 5% of your capital on a single trade.