First of all we must be quite clear what the RSI means and for this I am going to quote an article on the Binance page that says the following:
The relative strength index, is an indicator of "momentum" that shows whether an asset is overbought or oversold. It does so by measuring the magnitude of recent price changes (the standard setting is the previous 14 periods - i.e. 14 days, 14 hours, etc.). The data is displayed as an oscillator that can have a value between 0 and 100.
As an indicator of "momentum", the RSI shows the rate (momentum) at which the price is changing. This means that if the momentum increases as the price rises, the upward trend is strong and more and more buyers are coming in. Conversely, if the momentum decreases as the price rises, it could indicate that sellers will soon take control of the market.
A traditional interpretation of the RSI says that above 70 an asset is overbought, while below 30 it is oversold. Thus, extreme values could indicate an imminent trend change or "pullback". Even so, it would be better not to consider these values as direct signals to buy or sell. As with many other technical analysis (TA) techniques, the RSI can provide false or misleading signals, so it is always worth considering other factors before making a trade.
Now, having a clear concept of the RSI indicator we can say that the hive is at an oversold level and why?
Clearly we can see in the daily chart as the RSI configured in the previous 14 days in an area where the value of the hive is over the scale of 30, so we can say that this oversold.
But what can this indicator say about the future price of the hive?
Any asset that is in an over-sell or over-buy zone can give us a signal that the trend is about to change, either an uptrend can become downtrend or in this case the hive that is in a downtrend can change its uptrend in the next few days.
And of course this is positive.
But the following can also happen:
Because it is oversold, it can further decrease in value as the sellers settle their coins.
The good thing about being at this level is that the downward trend is about to end, but it probably still needs to go down a little more.
Where might the price of the hive go then?
This is a question that we've been asking ourselves constantly and it's that as it approaches the lowest minimum which is approximately 10 cents, there is still a possibility of falling a little more.
We must remember that the hive before it was included in the huobi list, reached the level of 9 cents but it was momentary and did not last more than 24 hours and we recovered its price to settle at 10 cents for a while before the big huobi bomb.
Could it fall to 9 cents or less?
The answer is yes....
Even being in an accumulation zone and being able to observe such a low volume during the last weeks there could be that possibility, I hope it doesn't happen, but I am almost sure that we will touch the 11 even 10 cents support and from here it could be a great rebound and recover what we have lost during the last 7 weeks.
It would be the ideal scenario to buy and get good profits.
It can happen and it may not happen but what do you think?
The RSI doesn't lie and indicates us that the tendency is about to change, I recommend to be in HOLD and to buy, makes days to mention that these prices we will not see it never again in the hive, therefore it is an excellent opportunity to buy cheap and to ignite, also to buy and to keep for in a near future to be able to obtain profits.
Remember that all this that I have just written are just projections, I am not a magician or an expert in markets, I only base myself by the knowledge of TA and the tendencies that the graphs show.
Source:
5 Essential Indicators Used in Technical Analysis
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