In light of the violent fluctuations experienced by the ChainOpera AI (COAI) currency, specifically after the sharp collapse that drove it to a low of $7.53 📉, our efforts are now focused on risk management and taking advantage of the current corrective rebound to reach safety 🛡️.
Given that current positions are stuck at high levels ($10 and $11) 🚧, our strategy should be twofold: to reduce positions and to cautiously position ourselves to adjust the overall average cost.
Risk management and positioning (buying points) 🎯
We do not recommend opening new buying positions under the current conditions, but rather focus on corrective buying only when the price retreats towards strong and tested support points, in order to reduce the overall average cost of your trapped trades:
First defense point for buying: It is preferable to cautiously position small quantities in the range of $8.00 - $8.50 🛡️. This area surrounds the last bottom ($7.53), and provides a good opportunity for adjustment in case the price re-tests the support without breaking it, reflecting the flexibility and strength of support.
Very cautious buying: If the last historical bottom is broken, one should wait for stronger historical or psychological support (such as $7.00 - $7.50). This purchase should be with a very small and cautious quantity 🤏.
Safe exit strategy (selling points) 🚪
The primary goal of the current corrective rebound is to give traders a chance to exit, not to form new profits. Selling should be the priority when the price reaches your resistance areas:
Selling to mitigate risk (priority): When the price reaches the range of $9.50 - $10.00 💸, which represents psychological resistance and the apparent cost price (AVL) on the chart, a significant portion of the quantity (at least 25-35%) should be sold 💰. This action ensures the recovery of part of the liquidity and mitigates the loss.
Exiting trapped positions (ultimate goal): If the rebound continues with the required strength, our most important target is the range of $11.00 - $11.50 ✅. This is the best opportunity to exit the remaining quantity at breakeven or with very slight loss, and to conclude the adventure of this volatile currency.
The most important point: Manage the stop loss 🛑
A critical stop loss order should be placed at the daily close below $7.50 🚨. Breaking this level means the currency enters a deeper distribution phase, and protecting capital becomes a top priority.
Do not be greedy for the current rebound. Dealing with a currency with this level of volatility and risk requires discipline 🧘. Take advantage of the rise to sell at the mentioned resistances, and maintain your capital 💵 to invest in more stable and clearer opportunities.
Important note: This is not investment advice. Always do your own research. We are analyzing the near and expected time.
