01.02.23
Today’s crypto trading spotlight deals with RSS3. RSS3 is a next-generation feed protocol that powers decentralized social, content, and e-commerce applications. RSS3 has been moving strongly the recent days and it seems like its upward move is not over yet.
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The crypto market in general had a good spike in the last minutes after the FED raised the key overnight interest rate. I am not a financial advisor, so I don’t know the impact on the economy, but it certainly seems to have a positive effect on the stock and therefore crypto market.
So as this is said, let’s get into the price action and charts of the cryptocurrency RSS3. On the daily chart you can see RSS3 running into a former area of resistance at around $0.25. Depending on how RSS3 trades if it reaches $0.25 the decision of Long or Short will be decided. As this has been trending down a long time on the daily chart, besides this one spike and die type of move in November I am more Short biased on this one.
If you look further back on the chart you can also see that the top wicks are a lot bigger than the bottom wicks. There have been a lot of wicks, which I see as a sign of aggressive selling. Not said that it will be the same this time again, but it might be.
Therefore I am more looking for a Short on this one, but will keep my hands still until this stair stepping price action on the 15min / 1hour chart will be over. You can see the price action of it on the 15 minute chart below.
The reason I will be cautious is that this has seen a lot of trapping Shorts, then squeezing them out and I will try to not be part of this. If I start trading this, it will be with a small size at the beginning, until I get a little buffer.
You can see that it reclaimed VWAP every time it got under it so far. I have gotten trapped on a lot of trades, especially Short trades. I am trying to get better by holding back on trading these kind of moves until “everyone forgets about it”. This way the wicky and extensive price action will not occur on such a frequent basis.
That said I am still looking for it to find a top around $0.25ish, but would not be surprised if it bursts through this level.
I hope this helps in some way, have a good rest of your day!
Niklas
This is not financial advice, but is for education only.
