Is FLOKI’s Rally Halted or on a Break? | And More in This Week’s Crypto Update
- Is FLOKI’s Rally Halted or on a Break?
- STX Retraces Back to Support
- TON About To Increase?
- Trading IMX in a Ranging Market
Is FLOKI’s Rally Halted or on a Break?
FLOKI had an outstanding rally, but it recently came to a halt. Will it continue soon?
Firstly, what is FLOKI? FLOKI is a decentralized community-driven token built on the Binance Smart Chain. The token was launched in June 2021 and gained popularity quickly due to its unique name and association with Elon Musk. The token has a total supply of 1 quadrillion and a circulating supply of 890 trillion, which is why the price is so low.
FLOKI’s price has been on a wild ride since its launch, experiencing significant gains and retracements. This year, the token gained 670%, but it has since retraced from that high. However, it may soon get back to those levels if the rest of the market also experiences a bull run.
FLOKI’s current situation
Currently, FLOKI is caught in a descending channel, which is a bearish signal. If the channel breaks to the upside, we will probably have another bull run on our hands. If the channel breaks to the downside, we will probably see further retracements.
If the price breaks to the upside, there is a $0.000065 resistance level to watch out for. Apart from that, there are no other resistance levels to the all-time high. That is because when FLOKI had its bull run in 2021, it made the most gains in the span of three days, gaining 450%, and as a result, it did not make any support or resistance levels.
On the other hand, if the price breaks to the downside, there are two support levels to watch out for: $0.00002 and $0.000005. Additionally, the 150 Simple Moving Average has proven to be very reliable so far as a mobile support and resistance.
Bottom Line: FLOKI is caught in a descending channel, and traders should watch for a breakout. If the price breaks to the upside, there is a resistance level at $0.000065, while if it breaks to the downside, there are two support levels at $0.00002 and $0.000005, along with the 150 Simple Moving Average.
STX Retraces Back to Support
STX is retracing after failing to break above the $1.00 resistance; let’s see what comes now!
What is Stacks (STX)? Stacks is an open-source network that enables smart contracts and decentralized applications (dApps) to be built on the Bitcoin network. The token is used to pay transaction fees and as a reward for miners who process transactions on the network. It was launched in January 2018 and has since gained popularity among investors and traders.
STX Price Analysis
STX recently broke above the $0.50 support level but was stopped by the $1.00 resistance. It currently appears to be retracing back to the $0.50 support level. This movement is typical in the cryptocurrency market, where prices tend to move in waves of support and resistance.
During this rally, the Relative Strength Index (RSI) has seen its most overbought level ever. Therefore, a retracement was inevitable, and the price is now consolidating. The most likely scenario now is that we will see a ranging market, as that is what usually happens to STX following a very overbought RSI. The RSI is a momentum indicator that measures the trend’s strength and can signal when a market is overbought or oversold.
Potential Future Movements
After the ranging market, if Bitcoin becomes bullish once again, we will probably see STX break above the $1.00 resistance level this time and head towards the next one, around $1.80. However, if Bitcoin experiences a bearish trend, STX may return to its support levels.
Bottom Line: STX has recently broken above its support level but is currently retracing back to it. Following the overbought RSI, we will probably see a ranging market. After that, if Bitcoin becomes bullish again, we can expect STX to break above the $1.00 resistance level and head towards the next one, around $1.80.
TON About To Increase?
Toncoin (TON) appears to be bullish despite the overall market pullback!
What is TON? TON is a cryptocurrency developed by the Telegram messaging app team. Telegram is a cloud-based messaging platform with over 500 million users worldwide. The company initially planned to use TON to enable secure, instant transactions within the app. However, after facing regulatory issues, Telegram was forced to abandon the project. Despite this setback, TON continues to be traded on several cryptocurrency exchanges.
TON’s performance in recent months
TON has been one of the best-performing cryptocurrencies since August 2022. As mentioned in the previous newsletter, the token has been following an uptrending channel. Toncoin tested this channel again in February and March. Currently, TON is closer to the bottom half of the channel, indicating that the coin may increase in value soon.
Resistance level and all-time high
Toncoin has recently developed a minor resistance at the $2.60 level. The price will need to break above this level to reach its all-time high, which is only 37% higher than the current price. If TON manages to break above this resistance level, we may see a significant increase in value.
If the uptrending channel breaks, there are two support levels to consider. The first is the $2.00 level, which has been a strong support level in the past. The second is the 150 Simple Moving Average (SMA), which is currently sitting at around $2.10. These support levels should prevent the price from experiencing a major downturn.
Bottom Line: TON is a cryptocurrency that has been performing well in recent months. The uptrending channel it has been following indicates that the coin may increase in value soon. TON has a minor resistance level at $2.60 that it will need to break above to reach its all-time high. If the uptrending channel breaks, there are two support levels at $2.00 and the 150 SMA that should prevent the price from experiencing a major downturn.
Trading IMX in a Ranging Market
Let’s see how you can trade IMX in a ranging market successfully!
What is ImmutableX IMX? ImmutableX IMX is the native cryptocurrency of the ImmutableX platform. ImmutableX is a layer-2 scaling solution for Ethereum, designed to offer fast and secure trading of non-fungible tokens (NFTs). ImmutableX uses the Ethereum network for security and settlement but offloads the heavy lifting of transaction processing and validation to its own layer-2 solution. ImmutableX aims to be the fastest and most secure way to trade NFTs on the Ethereum network.
IMX’s performance in 2022: IMX has had a good year so far, increasing about 200% since the start of the year. However, it is currently caught between two levels, which makes it an excellent candidate for range trading.
Trading with the Relative Strength Index (RSI) indicator
The Relative Strength Index (RSI) indicator is a momentum oscillator that measures the speed and change of price movements. It is used to determine when an asset is overbought or oversold. The RSI is usually an excellent choice to use on coins that are ranging.
In this chart above, we traded with the RSI on the 1-Hour chart with the basic settings of Period 14, buy when the RSI is below 30 and sell when the RSI is above 70. This setup brought a profit of 89% since February 1st, 2023, until today. This indicates that range trading with the RSI indicator can be a profitable strategy for IMX.
Disclaimer: Please take into account that the RSI works well when the market is ranging. When the market is in a downtrend, it will start working significantly worse.
Bottom Line: IMX showed significant growth in 2022, and is now ranging. The RSI indicator is a useful tool for trading IMX in its current-ranging market.
should prevent the price from experiencing a major downturn.