$VELODROME GOES UP OR DOWN?
Here is a detailed technical analysis of the chart
1. General Trend
• The current trend is bearish, clearly seen by the sequence of descending tops and bottoms on the chart.
• Moving Averages confirm this:
• The MM(7) (yellow) is below the MM(25) (pink) and MM(99) (purple), which demonstrates strong selling pressure and consolidates the downward trend.
2. Support and Resistance
• Main support: $0.1815 (already tested and respected on the chart).
• Resistance: Near the $0.1888 level, where the short moving average (MM(7)) may act as a price barrier.
• If the $0.1815 support is lost, the decline may intensify.
3. Technical Indicators
MACD (Moving Average Convergent Divergent)
• The DIF and DEA are negative (-0.0033 and -0.0036), which indicates a continuation of the downtrend.
• The MACD line is not yet showing any sign of reversal as it is below the zero line.
RSI (Relative Strength Index)
• The RSI(6) is at 24.92, indicating that the asset is oversold in the short term.
• However, RSI(12) (31.44) and RSI(24) (35.07) still do not show a clear recovery movement.
Stochastic RSI
• The Stochastic RSI is also at 17.85, close to the oversold region (<20). This suggests a possible bullish reaction in the short term, but the signal is still weak.
4. Volume
• The trading volume in the last few candles is low and does not show a significant increase. This indicates that the buying force is still weak.
Verdict
VELODROME/USDT is still in a bearish trend, with some signs of short-term exhaustion due to the RSI and Stochastic RSI in the oversold region. However:
• For a bullish reversal, an increase in buying volume and a break of the $0.1888 resistance would be required.
• If the $0.1815 support is lost, the decline may continue to lower levels.
Conclusion: The trend is bearish, but there are slight signs of a possible short-term correction due to oversold conditions. It is recommended to exercise caution and observe the price reaction in the next movements, especially at support and resistance levels.