Ethereum Classic [ETC] sends cautionary signals as price grows by over 25%

1 year ago 87
  • ETC’s terms has grown by 28% successful the past week.
  • Price illustration readings, however, revealed that the alt is overbought. 

Ethereum Classic [ETC] had a beardown week, with its terms expanding by 28.60%, according to information from CoinMarketCap. This made it 1 of the top-performing cryptocurrencies, on with Lido [LDO], which saw a terms summation of 55%, and Solana [SOL], which had a rally of 35% wrong the aforesaid period.

Read Ethereum Classic’s [ETC] Price Prediction 2023-2024

A retracement successful show for Ethereum Classic?

An appraisal of ETC’s show connected a regular illustration revealed that a terms imminent mightiness beryllium successful view, arsenic the plus traded astatine overbought highs astatine property time. 

First, its Money Flow Index (MFI) was spotted astatine 88 arsenic of this writing. Toeing the aforesaid path, ETC’s Relative Strength Index (RSI) was pegged astatine 63.79 successful an uptrend. These positions indicated that ETC was overbought. 

At this point, buyers’ exhaustion is communal arsenic caller request for the plus drops, leaving the buyers successful the marketplace incapable to prolong a further rally. This often results successful bears regaining power and initiating a terms drawback.

Further, an appraisal of ETC’s Bollinger Bands (BB) showed that the altcoin was severely volatile astatine property time. Although ETC’s terms broke supra the precocious set of the indicator, which indicated a continuation of the bullish trend, the width betwixt the precocious and little bands widened. This suggested precocious volatility.

When a crypto asset’s terms is highly volatile, it is prone to important terms swings implicit a abbreviated period. This tin marque it riskier to clasp oregon commercialized the asset.

Interestingly, a look astatine ETC’s Average Directional Index (ADX) (yellow) showed that the buyers’ spot was a rock-hard 1 that sellers mightiness find intolerable to revoke successful the abbreviated term.

This is due to the fact that it was positioned supra the Plus Directional Indicator (+DI) (green) and the Minus Directional Indicator (-DI) (red), which marque up the Directional Movement Index (DMI). 

How galore ETCs tin you get for $1?

At property time, the buyers’ spot astatine 31.48 was positioned solidly supra the sellers astatine 13.00.

Source: TradingView

Caution is advised

Despite ETC’s terms rally successful the past week, since the opening of the year, weighted sentiment has been negative. This meant that contempt the accordant maturation successful ETC’s worth since the twelvemonth started, investors inactive harbored antagonistic convictions. A antagonistic weighted sentiment often precedes a terms drawback.

Source: Santiment

Abiodun is simply a full-time writer moving with AMBCrypto. He is besides a lawyer with implicit 2 years of experience. With a keen involvement successful blockchain exertion and its limitless possibilities, Abiodun spends his clip knowing the technology, gathering projects, and educating radical astir it.

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