Price analysis: Latest situation in Ethereum, Ripple and Verge
Where are the leading cryptocurrencies in Ethereum, Ripple and Verge? According to the Depleted Sales Model, this is the latest situation in cryptocurrencies.
The Exhausted Sales Model was developed to understand that a product price bottomed. This model was designed using trend breakdown, volume profile and indicators that show trend rotation.
In this strategy:
– Trend lines
– Moving Averages.
– Dow Theory and Chart Formations can be used.
Several different concepts should be used to define trend change. The more validators are used as traders, the less the risk.
Exhausted Sales Model (TSM) rules:
1 – There should be a rapid fall in high volume.
2 – At the last bottom reached, the high volume should appear as a large bar in the volume indicator.
3 – The Higher Low wave should definitely be.
4 – Resistance Trend Line should definitely be broken.
The moving average of 5 – 40 or 50 periods should definitely be broken.
6 – After the moving average is broken, the price should be purchased and kept in the back test.
In Figure 2, the working example principle of this model is shown in Bitshares / Bitcoin parity.
There is no harm in using moving average types like EMA, SMA, WMA. The higher the moving average period, the greater the success of the analysis. Because a long moving average refraction creates a more important support for the product.
Panic sales naturally create great opportunities for well-informed traders and investors. Knowing when sales are exhausted provides the investor with a great deal of information. The Depleted Sales Model can be used to effectively identify buy regions.
Ripple / USD chart analysis according to Depleted Sales Model
On the Ripple chart, we observe that sales are running out according to TSM and a new bullish trend may begin, as the 50-day moving average (pink) and the trend (black) showing the bearish angle are at the final stage. In the back test (correction) of the moving average, if buyers can defend this area, these levels may start for higher prices. Such a move could create an opportunity to push the main resistance 1 USD levels for Ripple.
Verge / USD chart analysis according to the Exhausted Sales Model
On the verge graph, we observe that we are in the early stages of the TSM model. Although the sales seem to be exhausted, we see that the price cannot completely recover from the 50-day moving average (pink). This creates a relatively horizontal consolidation zone on the chart. In the following stage, after the price cuts the moving average upwards, back-testing will become a very important region for buyers. Such a move could create an opportunity to push the main resistance for Verge, the levels of $ 0.07.
Ethereum / USD chart analysis according to Depleted Sales Model
The Ethereum chart shows that we are in the final stages of the TSM model. When we examine the volume bars, it can be said that the reaction of the buyers in this region is much more dominant than the sellers. But it is clear that the trend (black), which shows the angle of decline, still forces buyers as a resistance. Likewise, in this region, the moving average (pink) acts as a support for buyers. In the later stages, if the price gets rid of this resistance zone, it is usual to start a new uptrend. Such a move could create an opportunity to push the 820 USD levels, which is the main resistance for Ethereum.
Disclaimer: What is written here is not an investment recommendation. Cryptocurrency investments are high-risk investments. If you do not have enough experience and knowledge, it is recommended to seek help from a consultant. Every investment decision is under the responsibility of the individual. Uzmancoin and the author of this content cannot be held responsible for personal investment decisions.