Whoa, whoa, whoa! 🔥 So, what's my take on the current price of this crypto $ETHFI ? Before I answer the question my dear followers asked me, we need to clarify a couple of important points:
Nobody knows the future.
Predictions about the value of an asset are made by studying its history, and in this case, #ETHFI is a VERY recent cryptocurrency, effectively entering the market on March 18th at 12 PM (UTC).
In this article, I analyze the ETHFI/USDT pair with the TradingView platform; it's free to conduct these analyses, so don't be afraid to learn and practice analysis.
All this analysis is based on my experience; I COULD be wrong; I'm a human being just like you!
EtherFi's governance token, ETHFI, debuted at over $4, but dropped 20% post-launch with over $118 million trading volume in first 45 minutes - WHY? I'll tell you why!!!
Technical Analysis for EthFI
I'll start by marking the initial price of the asset and its all-time high (although it's not a healthy ATH, as it's a product of launchpool FOMO).
However, it's a peak on the chart and a psychological level in the market that everyone hopes to "reach" at some point.
Analyzing the 15-minute candlesticks, we notice red candlesticks in the volume during the initial ones. This represents selling pressure from individuals who received the Token as a "reward" from the Launchpool. So, these individuals didn't "buy" anything; they're selling at any price, and everyone wants to sell when they see the red candlesticks, leading to pronounced panic selling. It's a pretty common behavior with these enlistment launches.
Take a look:
The RSI already indicating overbought conditions is showing us where the volume is changing its trading pressure. If everyone was previously selling, this is where an interesting support-resistance level begins to form, and it's where I'll mark my first "floor," so to speak. Check the chart, the rectangle I've marked (considering other indicators, but for the sake of clarity, it's a resistance range).
As we'll see on the chart, later on, the first resistance level is breached, and selling pressure takes over. However, the RSI no longer shows values below 30 (very few), so here I mark another lower range, acting as support which, as we'll see later, is retested again:
And what's the next move?
Sure, you're probably wondering, "What's next? Where do we go from here?"
We've got two well-defined ranges, one acting as support and the other as resistance, where we've seen that the price of the asset struggles to overcome.
In my opinion, given the challenging market conditions (because Bitcoin isn't showing signs of recovery), plus the FUD affecting the entire crypto market (this is where fundamental analysis comes in), it's highly likely that the crypto will continue moving within this range, essentially consolidating. However, we must be VERY careful not to breach this support level I've marked for you. If it does, it could lead to significant selling pressure, forcing us to mark new floors (and each time, lower ones).
Also, keep in mind that I've marked a regression trend on the chart, which has shown a slightly negative slope. This indicates that the market is consolidating but with a downward trend... it's not cause for alarm yet, but it's worth noting that if prices enter above the regression trend's average, there could be significant downside risk.
To wrap it up...
If you've made it this far, AWESOME! Thank you so much for reading. I tried to show in this article how I conducted the analysis. There might be questions, so I'm looking forward to all my knowledge-hungry followers to write down their doubts, what this article sparked in them... whatever you're thinking! I'll be reading your comments and responding as soon as I can!
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