This is Diss0nance back for another analysis article, this time on the altcoin PowerLedger (POWR). As usual, I'm going to start off with some basic analysis, and then I'll wrap it up with my predictions for future movements!
As we can see above, POWR has been trading down consistently for the past, oh, about 24 hours or so. This presents an opportunity and warrants a second look. upon closer inspection, the chart is forming a nearly perfect downwards trading channel, which means the price is fluctuating up and down between the lines of support and resistance I have drawn.
But a channel, by itself, isn't enough to go on. For a second backup factor, we should look at volume, which is supporting the idea of a potential reversal in the trend. As we can see, volume has been increasing over the past few hours, suggesting increased buying action to provide some support to the price, and possibly even eventual reversal.
Mostly we are looking for a buy signal right now. If you're feeling risky, it might be alright to go ahead and go long now, and try to ride the channel trend, selling at the top for some quick gains. Otherwise, wait for a break through the top of the channel and go long, setting you sell signal up a little higher. If you see a big spike in volume as the price breaks out of the channel, that will reinforce the trend, and you can feel confident buying in. A crossover of the 100 and 200 period Moving Average would reinforce going seriously long.
As usual, do not commit a significant level of your capital to any of the advice I present here, but make educated and informed trades for yourself. I wish you the best, and if you liked this post please upvote and resteem!
Happy Trading,
Diss0nance
