Cryptocurrency Price Analysis: Top 3 DeFi Coins With Best Risk/Reward; When Is the Right Time to Buy?
https://ift.tt/3G3T50C
The recent bloodbath in the crypto market took a significant toll on the majority of cryptocurrencies. Even the top coins in the ladder have lost half their value, indicating a declining trend in the price chart. However, this panic selling has brought special discounts to a few coins that can provide massive returns in their potential rally.
CRV Price Hints Recovery Signs At 0.786 Fibonacci Level
Source-Tradingview
On January 4th, the CRV token rally made a new higher high at $6.7. Later the price action entered a correction phase which discounted the price by 40% in just one week. The bulls attempted a relief rally from the $4 support but couldn’t surpass the $5.5 mark as the sudden sell-off in the crypto market triggered a free fall in CRV price.
This recent fall tumbled the coin by 65% from the previous swing high of $6.7 and plunged it to 0.786 Fibonacci retracement level. The coin chart shows several lower price rejection candles at this support, indicating the pressure high demand support.
The daily-RSI(32) slope barely touched the oversold neckline(30) and has started to rise again.
If the CRV price could sustain the $2.6 support, the crypto traders can mark a stop loss at $2.28 (-20%) with the expected target of $6.7(+125%), indicating a 7.7 risk to reward.
Descending Trendline Breakout Holds Key To Bullish Rally
Source- Tradingview
The RUNE price has been under a short-term downtrend since November 2021. The technical chart shows the price has faced multiple resistance from a descending trendline, which has plummeted the price to $3.4 yearly support level, indicating an 80% loss from the previous swing high of $17.3.
A daily-hammer candle formation indicates the buyer’s interest in this discounted price. However, a breakout from this falling trendline will provide better confirmation for a new rally.
Furthermore, the daily-Stochastic RSI indicator provides a bullish crossover between the K and D lines at the oversold region, supporting a bullish reversal.
The crypto traders entering a long position can place their stop loss at $2.79(-29%), for a possible gain to the $17.3 mark(+335), indicating a 10.8 risk to reward.
Falling Channel Bring Bullish Opportunity In LRC Coin
Source- Tradingview
The LRC correction phase began in November 2021 dropped to the $1.63 mark. However, the selling renewed as the crypto market expired a sudden sell-off and plunged to the $0.75 flipped support, indicating an 80% devaluation.
Moreover, the coin price is currently at combined support of $0.75 and the support trendline of a falling channel pattern. The LRC price rebounded from these support levels, with an inside day candle that could eventually break out from this chart pattern.
The daily-RSI(32) slope recovered from the oversold territory indicates increasing strength in-market buyers.
The long position traders can maintain their stop loss at $0.63(-30%), with growth potential to the $3.77 mark(+317), indicating a 10.1 risk to reward.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
Cryptocurrency
