By an expert analyst in digital markets
We have witnessed the anticipated transformation in ChainOpera AI (COAI), but with strength exceeding expectations! The price surged unexpectedly from the support area to break through the immediate resistance barrier at $9.57, reaching nearly $10.37. This breakout is a strong confirmation of the successful corrective rebound and its transformation into a rapid upward movement.
This analysis is directed at those intending to start trading in COAI now, as the rules of the game change after breaking resistance, and caution should be exercised due to the price entering overbought territory.
1. Updated Technical Situation Assessment (Critical Breakout)
The current price of $10.37 is clearly above the critical resistance level ($9.57) and the short-term moving average ($9.07), confirming buyer dominance at this moment. The next target is the following strong resistance at approximately $10.93 (MA(25)). The Relative Strength Index (RSI) jumped to over 70, indicating that the price has entered the overbought territory on the short time frame, which reinforces the expectation of profit-taking or an imminent corrective pullback.
2. New Positioning Strategies (Entry Points)
Entering now at $10.37 carries high risk due to overbought conditions. The better strategy is to wait for a correction and divide the buying process into stages to reduce risk:
* First Entry (30% of Quantity): It is preferred to start with a buy order in the recently broken support area at $9.50 - $9.80. This purchase is made if the price returns to test this area and confirms it as support, providing a relatively safe entry point after technical confirmation.
* Second Entry (40% of Quantity): This order is executed when the price breaks and holds above the next resistance, at $11.00 - $11.10 (above MA(25)). This entry is a confirmation of a stronger upward trend towards higher targets.
* Cautious Buying (30% Remaining): This order remains a safeguard for the worst-case scenarios. A buy order is placed in case the rebound fails completely and the price returns to test the last bottom, in the range of $7.80 - $8.30.
3. Sell Orders and Profit Taking (More Precise Targets)
With the breach of the $9.57 level, higher targets become more realistic and must be accurately defined for profit-taking and securing:
* Selling for the first profit-taking: The initial target is the area of $11.00 - $11.50. This area is very pivotal and represents the strong resistance MA(25) where the odds of profit-taking increase, so 50% of the quantity should be sold here to secure profits.
Selling for the second profit-taking (optimistic target): The next target is in the range of $14.00 - $15.00. This is a very strong psychological and technical resistance area. The remaining quantity is sold here to successfully close the deal if the momentum continues.
4. Risk Management and Stop Loss (The Most Important Point) 🛑
As the price moves up, the stop loss level should be raised to protect new positions:
Stop loss for new positions: A stop order should be placed at the close of an hourly candle below $9.50 📉. Breaking the recently breached resistance level means that the breakout was a trap, and immediate exit is necessary.
Final Stop Loss: If you are using a phased buying strategy, the final stop loss for all positions should be at the daily close below $8.50.
The current movement provides an opportunity, but it is now in overbought territory. It is better to wait for a calm correction at $9.50 - $9.80 before entering. Discipline and adherence to stop-loss orders are key to success in these highly volatile currencies.
Note: This is not investment advice. Do your own research. Additionally, the article took time to write and may not be aligned with the current event.. and the momentum has risen more and more.
