This short article will give you my personal view on the CHP price compared to ETH and the potential moves it might make in the coming days.
Recap
The CHP price has been dropping several weeks in a row but last 5-7 days this move has slowed down and we even had a few green candlesticks showing a clear sign that there is support at the 0.00003 level compared to ETH.
Analysis
Focusing on the short term I added a support and a resistance line on this CHP/ETH 8 hour graph. The support level is situated slightly above the 0.00003 level and has been tested 2-3 times in the last week. As you can see there is a new test going to happen as we speak.
If the support is confirmed again we will most likely test the resistance level around 0.0000365. I am personally day trading between those 2 ranges but we seem to be building up to a point where it might have to choose a direction knowing the green lines are approaching.
Personal advice
- Day traders: Focus on the range between support and resistance,consider closing positions when breaking through the support level and wait for a new entry point.
- Long-term traders: If we break resistance level 1, build up your position. Once resistance 1 level is confirmed as new support in the next days, build up when it tests this level. If support level 1 is broken, close open positions and re-enter when a new support level is found.
Feel free to comment and share your thoughts!
Source graph: Kucoin