Hello everyone,
How are you all? I hope people reading this blog are happy and doing great in their life.
My last blog was about the technical analysis of MEMEFI token and today I am here to share the update on the same so that we can plan a safe exit strategy. Before I will continue writing I will remind everyone here that I am not a financial advisor and your decisions are your responsibility.
In the last blog we shared about that resistance line and how the price is trying to break it to find higher values for the token itself. At this point one of the key factors why I am still going to hold this token can be seen in the screenshot below. The below screenshot is a zoomed in view for 1D chart.
On the 1D chart time frame the memefi token can be seen making a buying pressure. The selling pressure is quite less and I think most of the people already dumped their tokens during the initial days of when this token was listed on the market. We will also have a look at the weekly chart below.
We can see that even at the weekly timeframe there is buying pressure. Also you can see that the selling pressure has reduced with time and since the token got listed on binance we have seen heavy buying in the token. One thing that can be risky is that whales might try to manipulate and exit from this token very soon as it is a very low cap coin at the moment.
So for the safe exit strategy the stop loss I am going to suggest can be seen below.
You can keep an eye at the orange support line for now and in case it get's broken up we will be in 37% loss from current price. That is the max you can wait for or even set your own stop loss limits. I am going to look at those two trendlines and in case the green support line is confirmed we can aim for higher price easily.
Thank You