1. General trend:
- The chart shows that the price saw a sharp rise at the beginning, rising from 0.001000 to 0.014149 in a very short period, which reflects a very strong buying momentum.
- After this sharp rise, a quick and strong correction occurred, with the price falling to the 0.007218 levels. Currently, the price is trading relatively sideways after the decline with slight fluctuations between the 0.007000 and 0.007500 levels.
2. KDJ index (Kai, D, G):
- K = 34.61, D = 29.28, J = 45.26: The indicator shows that there is a beginning of a slight recovery from the oversold areas, but the indicator is still in an area that is not close to the overbought area, which means that there is a chance for the rise to continue if the buying momentum continues.
- If the K indicator continues to rise above the 50 level, it may indicate increasing buying momentum.
3. Relative Strength Index (RSI):
- RSI at 34.29: This indicates that the price has exited the oversold areas, but is still in the lower area of the indicator, which means that there is room to rise if the current momentum continues. If the RSI rises above 50, it may be a sign of the beginning of a new bullish wave.
4. Support and resistance points:
- Nearest Support: Current support is centered around the 0.007000 level. If the price continues to trade above this level, it may support the continuation of the sideways or bullish movement.
- Deeper Support: The deepest support level is at 0.005164, which is a level that may see strong buying pressure if prices fall.
- Nearest Resistance: The nearest resistance is at the 0.009985 level, which is a level that the price may encounter in any attempt to rebound upwards.
5. Trading momentum:
- The current movement is still volatile after the price broke out from the historical high. The price is now trading relatively sideways, which may indicate a temporary stabilization before taking any clear direction.
- If the trading volume increases with the break of the resistance 0.007500, we may see an attempt to rise towards 0.009000 or even 0.009985.
6. Proposed strategy:
- Buy deals:
- You can consider entering buy trades at the current levels of 0.007218 or any slight decline towards 0.007000.
- The first target for buying will be at the 0.008500 levels, with a second target at the resistance level of 0.009985.
- Stop loss can be placed below the support 0.007000 (for example, 0.006800) to reduce risks.
- Sell deals:
- If the price fails to maintain the 0.007000 level and is broken, sell trades can be entered with a first target at 0.006000.
- Stop loss in case of selling should be placed above the level of 0.007500 to reduce the risks in case of a sudden buying bounce.
7. Future expectations:
There are signs of market stabilization after the sharp decline, which means there is a possibility of an upward rebound if the buying momentum continues.
- If the price manages to rise above the 0.007500 level, we may see a continuation of the rise towards the 0.009000 and 0.009985 levels.
- If the support level of 0.007000 is broken, we may see an additional decline towards the levels of 0.006000 or even 0.005164.
Summary of the analysis:
- Prevailing trend: Sideways with potential for upward bounce.
- Indicators: KDJ and RSI indicate the beginning of a recovery from oversold conditions with potential buying momentum.
- Support and resistance points: Support at 0.007000 and 0.005164, resistance at 0.009985.
- Suggested deals:
- Buy at current levels with targets at 0.008500 and 0.009985.
- Sell on break of 0.007000 with target 0.006000.
