DENT, correction or bubble?
Updated
Disclamer: I'm sharing my thoughts. I don't give advice to anyone. All decisions are yours. Plan a trade. Trade the plan.
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After rising to a fabulous almost 0.015 on the background of bitcoin falling into the 53k zone, the price on DENT went down.
Looking at the chart in terms of technical analysis, the multiple rises in a few days is frightening.
And to better understand the situation, we should look at the fundamental factors. Thanks to the commenter who encouraged me to do so.
NEWS
So, the news on Feb. 10:
Binance research
Since February 10, the number of addresses with DENT has grown from 37k to 47k and the transaction graph matches the price growth graph. 587 as of March 18 and 4.86k, 8 times more, as of March 23.
The data is available on binance research.
There is one important point here.
"This data is based on what is shown in the blockchain, therefore transactions taken within exchanges are not recorded unless they occur on-chain."
At this point I can't tell if binance transactions are recorded on-chain. If anyone knows, please post in the comments.
You should also take into account that according to binance there is also a shift in audience - if last year the maximum percentage of traders was just over 6%, in January of this year about 4%, then in March 21 it's over 21%.
What I think:
- Not a bubble
- The price has bounced back from 0.5 Fibonacci
- price will go up
Again, you alone are responsible for all decisions made and not made.
........................................
After rising to a fabulous almost 0.015 on the background of bitcoin falling into the 53k zone, the price on DENT went down.
Looking at the chart in terms of technical analysis, the multiple rises in a few days is frightening.
And to better understand the situation, we should look at the fundamental factors. Thanks to the commenter who encouraged me to do so.
NEWS
So, the news on Feb. 10:
- DENT partnered with Apple in early February (confirmation on Apple's website)
- DENT tweets the following "New Toys from SpaceX Let's disrupt the Telco space together #starlink - high-speed, low latency broadband internet. SatelliteRocket Woman astronaut starlinkcom Dentcoin #BTC #ETH #GSMA #eSIM @SpaceXStarlinkElonMusk - #DENT is the first global and digital carrier in the world!
Binance research
Since February 10, the number of addresses with DENT has grown from 37k to 47k and the transaction graph matches the price growth graph. 587 as of March 18 and 4.86k, 8 times more, as of March 23.
The data is available on binance research.
There is one important point here.
"This data is based on what is shown in the blockchain, therefore transactions taken within exchanges are not recorded unless they occur on-chain."
At this point I can't tell if binance transactions are recorded on-chain. If anyone knows, please post in the comments.
You should also take into account that according to binance there is also a shift in audience - if last year the maximum percentage of traders was just over 6%, in January of this year about 4%, then in March 21 it's over 21%.
What I think:
- Not a bubble
- The price has bounced back from 0.5 Fibonacci
- price will go up
Again, you alone are responsible for all decisions made and not made.
Note
Nevertheless, DENT is still under the downtrend line, which needs to be broken. It is clearly visible on the hourly chart.It is also possible to recognize on the same hourly chart a figure of head and shoulders, which should lead to a fall in the area of 0.003. But I don't believe that right now.
Note
Breakthrough or false breakthrough?On the 15-minute chart we see at 9:30 (UTC+1) shooting star at 0.01047+, moving into the 0.0096 zone, a slow rise and taking 0.01047, exit of the trend line.
This is very healthy behavior.
Who needs more confirmation is waiting for the next point at 0.0114.
Note
One more confirmation - the reason for the fall was a bearish triangle, which was broken down to about its height (black arrow).
Note
So why are we falling again?
- The rise from 0.009 to 0.012 is +33%
- Closer to 0.012, high volatility was seen
- The decline, given both factors above, is a normal phenomenon
- Bitcoin price may have played a role (gray line)
- I do not exclude that we are at the bottom of the channel
Hopefully, we won't go below 0.01
Stop Loss is your friend and an opportunity to buy cheaper.
Trade closed: stop reached
Note
From my perspective, DENT correction is over. There are two important points on the chart:
- swing low is higher than last swing low (in opposite to bitcoin)
- trendline is broken
Buy? It's up to you to decide. I expect a ~47k drop in bitcoin. If it will be sharp, DENT might go under 0.009. I will catch it there. Probably buy half the amount. After ~47k bitcoin may go to retest 43.
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