Trade Analysis 49: Where is $RARE heading to?!
If you read my previous post on RARE, you will know that 2 weeks ago, RARE was the Hottest coin in Crypto that had risen 380% in just 3 days. Yet the sentiment turned Bearish in 1 week after, and now the price has dropped 54% from its All-time High.
Will the price continue to drop lower? Or might the price reverse soon? Is it a good time to buy low now? Or should we short Rare?
We know that users might have these questions in mind during their trade. Today we will analyze a few possible scenarios that might happen on RARE's price in the next few days to help you with your trade.
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1. Continue Drop.
If RARE's price continues to go lower, we can look at support levels of $0.13 and $0.09. The $0.09 support level is where the 300% rally began, so it might serve as a strong support or bullish reversal level. It might be a good opportunity to buy the dip at these support levels, but please do not allocate all your funds on this strategy as that's a risk of the price dropping further after your entry.
2. Pull Back.
Although the probability is smaller, we can't deny the possibility that the price might pull back quickly and strongly, challenging resistance levels of $0.175 and $0.185 subsequently.
If you are a short-term trader, you can try to go long on this quick rise and take profit at these resistance levels. However, if you are a long-term holder, then Scenario 3 might be more suitable for you.
3. Consolidation.
If RARE wants to start another rally, it will most likely need an extended consolidation period to accumulate more buying power first. What you need is patience in this scenario. Wait for the price to go to either scenario 1 or 2 first, create a higher low, and then gradually accumulate your chips.
That's it for today $RARE Trade Analysis. I hope this analysis help you make smarter trade decision.
Trade Smarter! Peace Out ;)
