Oversold Cryptocurrencies Analysis on the 4h Chart: A Closer Loo
Let's examine a few oversold cryptocurrencies and the importance of waiting for support levels to be reclaimed before going long. For those holding short positions, it's crucial to trail your stop loss based on the average price change or the current percentage difference from the middle Bollinger Band, depending on your risk tolerance and profits gained from the breakdown. This helps in locking in profits while allowing for continued participation in the downtrend.
BELUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 0.9669 on 7th June, 2024. Price has dropped as low as 0.7528.
Key Levels:
Support: Needs to reclaim 0.7922 before another significant bullish move.
Bollinger Bands: Lower: 0.7717, Middle: 0.8198, Upper: 0.8679
Resistance: 1.0358
Average Price Change: 1.5%
Analysis:
BELUSDT.P is currently in a bearish trend after losing key support at 0.9669. The price has dropped significantly, reaching a low of 0.7528. To consider entering a long position, it's crucial to wait for the price to reclaim the support level at 0.7922. This would indicate a potential shift in momentum. Until then, the lower Bollinger band at 0.7717 suggests further downside risk, while the resistance at 1.0358 remains a distant target.
COREUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 1.66789 on 11th June, 2024. Price has dropped as low as 1.51805.
Key Levels:
Support: Needs to reclaim 1.66245 before another significant bullish move.
Bollinger Bands: Lower: 1.59168, Middle: 1.68470, Upper: 1.47772
Resistance: 1.73771
Average Price Change: 1.7%
Analysis:
COREUSDT.P shows a bearish trend with the price dropping below key support at 1.66789. The current price low of 1.51805 indicates significant downward momentum. Before considering a long position, the price needs to reclaim the support level at 1.66245. This would suggest a potential reversal. The lower Bollinger band at 1.59168 indicates further downside risk, while the resistance at 1.73771 is a key target if the trend reverses.
ZRXUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 0.4525 on 11th June, 2024. Price has dropped as low as 0.4232.
Key Levels:
Support: Needs to reclaim 0.4503 before another significant bullish move.
Bollinger Bands: Lower: 0.4360, Middle: 0.4546, Upper: 0.4733
Resistance: 0.4600
Average Price Change: 1.4%
Analysis:
ZRXUSDT.P is currently bearish, having dropped below the support level of 0.4525. The price has reached a low of 0.4232, reflecting strong downward pressure. To consider a long position, the price needs to reclaim the support level at 0.4503. This would indicate a potential bullish reversal. The lower Bollinger band at 0.4360 suggests additional downside risk, while resistance at 0.4600 is the next key level to watch if the price recovers.
Summary
In all three cases (BELUSDT.P, COREUSDT.P, and ZRXUSDT.P), the cryptocurrencies are currently oversold and in a bearish trend. It's critical to wait for the price to reclaim their respective support levels before considering any long positions. This strategy ensures that the downward momentum has ceased and that there is a potential for a bullish reversal. Until these supports are reclaimed, the risk of further declines remains high.
For those holding short positions, consider trailing your stop loss dynamically, using either the average price change or the current percentage difference from the middle Bollinger Band, depending on your risk tolerance and profits gained from the breakdown. This approach strikes a balance between securing your gains and potentially capturing further downside momentum. By adjusting your stop loss in harmony with market fluctuations, you can maximize your profit protection while remaining adaptable to potential further price drops.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Trading cryptocurrencies involves significant risk, and you should consult with a qualified financial advisor before making any investment decisions.
BEL:
CORE:
ZRX:
BELUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 0.9669 on 7th June, 2024. Price has dropped as low as 0.7528.
Key Levels:
Support: Needs to reclaim 0.7922 before another significant bullish move.
Bollinger Bands: Lower: 0.7717, Middle: 0.8198, Upper: 0.8679
Resistance: 1.0358
Average Price Change: 1.5%
Analysis:
BELUSDT.P is currently in a bearish trend after losing key support at 0.9669. The price has dropped significantly, reaching a low of 0.7528. To consider entering a long position, it's crucial to wait for the price to reclaim the support level at 0.7922. This would indicate a potential shift in momentum. Until then, the lower Bollinger band at 0.7717 suggests further downside risk, while the resistance at 1.0358 remains a distant target.
COREUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 1.66789 on 11th June, 2024. Price has dropped as low as 1.51805.
Key Levels:
Support: Needs to reclaim 1.66245 before another significant bullish move.
Bollinger Bands: Lower: 1.59168, Middle: 1.68470, Upper: 1.47772
Resistance: 1.73771
Average Price Change: 1.7%
Analysis:
COREUSDT.P shows a bearish trend with the price dropping below key support at 1.66789. The current price low of 1.51805 indicates significant downward momentum. Before considering a long position, the price needs to reclaim the support level at 1.66245. This would suggest a potential reversal. The lower Bollinger band at 1.59168 indicates further downside risk, while the resistance at 1.73771 is a key target if the trend reverses.
ZRXUSDT.P (Oversold 11th June, 2024)
Current Status: Bearish
Recent Price Action: Lost support at 0.4525 on 11th June, 2024. Price has dropped as low as 0.4232.
Key Levels:
Support: Needs to reclaim 0.4503 before another significant bullish move.
Bollinger Bands: Lower: 0.4360, Middle: 0.4546, Upper: 0.4733
Resistance: 0.4600
Average Price Change: 1.4%
Analysis:
ZRXUSDT.P is currently bearish, having dropped below the support level of 0.4525. The price has reached a low of 0.4232, reflecting strong downward pressure. To consider a long position, the price needs to reclaim the support level at 0.4503. This would indicate a potential bullish reversal. The lower Bollinger band at 0.4360 suggests additional downside risk, while resistance at 0.4600 is the next key level to watch if the price recovers.
Summary
In all three cases (BELUSDT.P, COREUSDT.P, and ZRXUSDT.P), the cryptocurrencies are currently oversold and in a bearish trend. It's critical to wait for the price to reclaim their respective support levels before considering any long positions. This strategy ensures that the downward momentum has ceased and that there is a potential for a bullish reversal. Until these supports are reclaimed, the risk of further declines remains high.
For those holding short positions, consider trailing your stop loss dynamically, using either the average price change or the current percentage difference from the middle Bollinger Band, depending on your risk tolerance and profits gained from the breakdown. This approach strikes a balance between securing your gains and potentially capturing further downside momentum. By adjusting your stop loss in harmony with market fluctuations, you can maximize your profit protection while remaining adaptable to potential further price drops.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Trading cryptocurrencies involves significant risk, and you should consult with a qualified financial advisor before making any investment decisions.
BEL:
CORE:
ZRX:
Disclaimer
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