Technical analysis and potential scenario
The chart shows that the currency experienced a very sharp spike in late September, followed by a violent and prolonged drop and correction. The recent movement is sideways trading in a narrow bottom after the initial collapse, indicating a temporary stability in a very low price range.
• Possible scenario: Continued sideways trading at the bottom until enough strength is accumulated to break the nearby resistance area. This behavior is common after sudden spikes.
Trading plan and recommendations
• Suggested buy areas (entry):
• Cumulative purchase (DCA): at current levels near $0.0160 to $0.0176 (for a very small amount) to start building.
• Suggested sell areas (profit taking):
• First price target (near resistance): around $0.0250 (partial profit taking).
• Strategic price target (medium resistance): around $0.0400 (if momentum continues).
• Stop Loss:
• Closing a weekly candle below the recent low, approximately at $0.0145.
Strategy and risk management
• Strategy: Accumulation at Bottom. Start with a small amount, and avoid allocating a large portion of capital to this coin due to the high volatility it has shown in the past.
• Advice: Do not risk a large amount in this coin that appears to have relatively low liquidity (24-hour trading volume $23.64M) and its trading history on this chart is short.