Looking at the attached image of the analysis of the $EIGEN currency on the 4-hour time frame, some key observations can be made based on the indicators shown:
1. Moving Averages (EMA):
The current price (3.618) is below the moving averages (EMA7, EMA25, EMA99), indicating that the general trend is bearish in the short and medium term.
2. MACD Indicator:
The fast line (DIF) and the slow line (DEA) are close to meeting at zero. This may indicate the beginning of a new move in the trend, either up or a continuation of the downtrend.
Consecutive red candles on the MACD indicator show weak buying momentum.
3. Support and resistance levels:
The main support is currently at 3.508, which is the recent low.
Current resistance is at 3,838, which is the previous day's high.
4. Trading volumes:
The trading volume over the last 4 hours appears to be lower than previous periods, indicating a decline in market momentum.
Recommendation:
If the price continues to hold above the 3.508 level with an increase in trading volumes, there may be a chance for a bounce.
If the support 3.508 is broken, the decline is likely to continue to lower levels.
It is better to wait for a confirmation signal to either buy or sell based on changes in indicators.
Please consider monitoring the market and its developments before making any trading decisions.
