CORE has taken a bounce of 21% from its recent swing low. It has been following a downtrend since February. The coin was just listed on the OKX exchange.
- CORE/USDT is up 0.78% today
- CORE/USDT is down 86% from its all-time high
CORE/USDT is trading at $0.90502 which is almost 21% above its recent swing low. The core is a relatively new digital asset that was newly listed on the OKX exchange. On the day of its listing, the coin pumped up almost 22000% and gave the early investors a massive return. After that, the price declined 86% due to the fact that the investors are booking profits while exiting from their positions.
The Daily chart is showing a minor bounce from daily support
On the daily chart, we can observe that the asset was following a downtrend just after the massive pump. Since it is a relatively new asset on the exchange, there is not sufficient data available on the chart to make accurate predictions. According to technical analysis, we can see a swing low was created at $0.72686. This newly created swing low will be acting as a support on the daily timeframe.
Further analysis can highlight a factor for the recent surge in price, which was the RSI indicator. A bullish divergence was formed on RSI which indicated the increasing strength of the bulls and the diminishing momentum of the bears. This led to a bounce of almost 22%. The price also managed to close a Daily candle above the 9 and 15 EMA giving more confirmation of the reversal.
The 4H chart represents increased volatility
The 4H timeframe is indicating a highly volatile price action. The price humped almost 74% in the last month and also saw a sharp decline of almost 47% in the last few days. This represents the highly volatile nature of this asset. Although the price has taken a decent bounce, it is still trading under 200 EMA and its daily resistance of $0.95771. It means that bears can still dominate and push the prices down, where the first line of defense for the bulls will be at $0.81821. Investors should remain cautious in such a market and follow proper risk management.
On the upside, the price must get over its first hurdle of $0.95771. If successful in piercing that level, it can potentially ride 47% before hitting its next resistance at $1.42533.
The RSI indicator is currently at 65.99 and the RSI has crossed the MA line towards the upside indicating buying momentum.
The MACD indicator made a bullish crossover, the MACD line is slowly making its way above the 0 line highlighting the probability of an uptrend.
As observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.
Support Levels: $0.72686 – Support 1
$0.81821 – Support 2
Current Price: $0.90502
Resistance Levels:$0.95771 – Resistance 1
$1.42533 – Resistance 2
Core was following a downtrend for the past couple of months. But the volatility has increased recently. Investors must keep in mind that the digital currency is in its early stages of trading. This means that there is high volatility in the asset. If proper risk management is followed, investors can lose money. A recent surge in price increases the probability of further upside. But the price is still under the 200 EMA on the 4H timeframe. So the risk of a downfall cannot be ignored.