For this 03/01/2022, we look at cryptocurrencies making waves from Technical Analysis Perspective.
Traders of different trading timeframe philosophies would agree that it is important to gain an understanding of a currency pair's price action. This importance varies among traders, but it still remains important as traders look to buy low and sell high. Every day presents new opportunities to examine cryptocurrencies and their price movement (technical analysis).
Let’s examine the cryptocurrencies that have made the most recent technical analysis moves with various indicators. This is not an exhaustive list, this is just a selection of cryptos that have made a significant movement or have made a shift. None of the below is financial advice, you are encouraged to do your research before trading or investing in any securities. Cryptocurrency positions carry risk of loss of investment principal.
Cryptocurrency #1:CLOUSD
The daily price is above the cloud (kumo), the price is above the Kijun Sen (a measure of the average of the highest high and lowest low over the last 26 periods, which happens to be days on a daily chart), and the Tenkan Sen (a measure of the average of the highest high and lowest low over the last 9 periods, which happens to be days on a daily chart) is above the Kijun Sen. All of this points to a bullish trend.
The Relative Strength Index (RSI) on a 14 period measurement on a hourly chart, which means 14 trading hours are considered in the indicator's findings, shows us that CLOUSD is in an overbought state. Criteria differ as far as what would be considered overbought, some have it at above 80 and others have it at above 70, in these reports, the decision is to compromise in the middle at 75. What does it mean to be in an overbought state? It means that the price action has reached a point of bullish exhaustion according to the RSI and there's a possible opportunity for sellers and profit-takers in long positions.
Cryptocurrency #2:DCRUSD
DCRUSD is appearing bullish according to the Moving Average Convergence Divergence (MACD) indicator on a daily chart with the common default settings of a 12 day Exponential Moving Average less the 26 day Exponential Moving Average with the 9 day Exponential Moving Average to be used as the Signal Line. The signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
The Relative Strength Index (RSI) on a 14 period measurement on a hourly chart, which means 14 trading hours are considered in the indicator's findings, shows us that DCRUSD is in an overbought state. Criteria differ as far as what would be considered overbought, some have it at above 80 and others have it at above 70, in these reports, the decision is to compromise in the middle at 75. What does it mean to be in an overbought state? It means that the price action has reached a point of bullish exhaustion according to the RSI and there's a possible opportunity for sellers and profit-takers in long positions.
Cryptocurrency #3:FTTUSD
FTTUSD's daily trend is bullish and the Bollinger Bands support this as the price is contained between the first and second Standard Deviation levels above the mean.
Right now, the hourly trend is an upswing and the Bollinger Bands help confirm it as the price is nicely contained within 1-2 Standard Deviation levels above the mean.
Cryptocurrency #4:JSTUSD
On the daily chart for JSTUSD, the Moving Average Convergence Divergence (MACD) is showing a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
The hourly chart of JSTUSD has the Relative Strength Index (RSI) rising above 75 in the previous trading hour, which indicates that the stock is overbought. This is commonly used in conjunction with other indicators to confirm a possible situation where one would go short on this currency pairing, or take profits from a long position.
Cryptocurrency #5:NEOUSD
The Moving Average Convergence Divergence (MACD) indicator for NEOUSD on a daily chart has shown a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
NEOUSD is in an overbought state according to the RSI on a 14 period basis on a hourly chart. The determination of an overbought state is that the RSI is below 25. Price action according to this popular indicator has reached a point of bullish exhaustion and there's a possible opportunity for sellers and profit-takers in long positions.
Cryptocurrency #6:PNKUSD
The Moving Average Convergence Divergence (MACD) indicator for PNKUSD on a daily chart has shown a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
Examining the Moving Average Convergence Divergence (MACD) for PNKUSD, the signal line crossed below the MACD Line and the MACD Histogram crossed below the Zero Line in the previous trading hour on the hourly chart. This is a bearish signal, especially when combined with an downward price trend.
Cryptocurrency #7:QTMUSD
The Moving Average Convergence Divergence (MACD) indicator for QTMUSD on a daily chart has shown a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
QTMUSD is in an overbought state according to the RSI on a 14 period basis on a hourly chart. The determination of an overbought state is that the RSI is below 25. Price action according to this popular indicator has reached a point of bullish exhaustion and there's a possible opportunity for sellers and profit-takers in long positions.
Cryptocurrency #8:XSNUSD
The daily price is below the cloud (kumo), the price is below the Kijun Sen (a measure of the average of the highest high and lowest low over the last 26 periods, which happens to be days on a daily chart), and the Tenkan Sen (a measure of the average of the highest high and lowest low over the last 9 periods, which happens to be days on a daily chart) is below the Kijun Sen. All of this points to a bearish trend.
The hourly price is below the cloud (kumo), the price is below the Kijun Sen (a measure of the average of the highest high and lowest low over the last 26 periods, which happens to be hours on a hourly chart), and the Tenkan Sen (a measure of the average of the highest high and lowest low over the last 9 periods, which happens to be hours on a hourly chart) is below the Kijun Sen. All of this points to a bearish trend.
Cryptocurrency #9:ZILUSD
The Moving Average Convergence Divergence (MACD) indicator for ZILUSD on a daily chart has shown a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
ZILUSD is in an overbought state according to the RSI on a 14 period basis on a hourly chart. The determination of an overbought state is that the RSI is below 25. Price action according to this popular indicator has reached a point of bullish exhaustion and there's a possible opportunity for sellers and profit-takers in long positions.
Cryptocurrency #10:ZMTUSD
On the daily chart for ZMTUSD, the Moving Average Convergence Divergence (MACD) is showing a bullish signal, the signal line crossed above the MACD Line and the MACD Histogram crossed above the Zero Line in the previous trading day on the daily chart.
ZMTUSD is in an overbought state according to the RSI on a 14 period basis on a hourly chart. The determination of an overbought state is that the RSI is below 25. Price action according to this popular indicator has reached a point of bullish exhaustion and there's a possible opportunity for sellers and profit-takers in long positions.