By a technical analysis expert in digital markets
After weeks of volatility and a sharp drop that recorded a bottom at $6.85, ChainOpera AI (COAI) has entered a crucial phase that requires quick and accurate trading decisions. The price is currently stabilizing at $7.46, but technical indicators are sounding the starting whistle 🚦.
The most prominent and important transformation is the confirmation of a classic buy signal from the MACD indicator, where the faster line crossed above the signal line and both are still below the zero line. This crossover is the strongest evidence that negative momentum has dissipated, and the currency is poised to begin a corrective rebound wave.
Analysis of the new opportunity (Why buy now?)
The price $7.46 stands directly at the moving averages, which turn into strong resistance barriers ($7.54 and $7.69). Success in breaking through these resistances will mean entering the stronger scenario:
Expected scenario: Breaking through the moving averages and heading to test the psychological resistance and cost price (AVL) at $8.20 and then launching towards the higher targets.
Positioning strategy for those starting to trade now 🎯
The entry strategy relies on leveraging the MACD signal and risk distribution:
Buy Orders (Entry Points) 🛒
Buying (initial entry 30%): at the current market price ($7.46) or waiting for confirmation of an hourly candle close above $7.70 (above the moving averages). This is the most likely entry based on MACD.
Buying (adjustment and reserve 40%): in case of a price drop, a second buy order is placed at the recorded bottom area $7.00 - $7.20. This ensures the best possible price in case of a failure to rebound.
Sell Orders (Take Profit and Stop Loss Points) 💰
To ensure the success of the trade, strict adherence to exit orders is required:
First Take Profit: at the psychological zone and strong resistance $8.80 - $9.00. Selling 50% of the quantity here secures profits.
Second Take Profit: at $10.00 - $10.50. This point represents an optimistic target and an excellent profit-taking opportunity before the price returns for correction.
Critical Stop Loss (No Negotiation): Place an immediate stop loss order at the close of an hourly candle below $7.00 🚨. Breaking this level means that the MACD signal was a trap, and you should exit immediately.
The MACD gives us the green light 🟢. Committing to splitting the quantities and placing a stop loss order is the key to survival in this volatile currency.
Important Note: Do your own research, this is not investment advice, trade cautiously.
