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1. Trend Analysis:
The price recently made a sharp drop, down about 19.96% from the recent high.
It is currently trading near the lower Bollinger Band, which could indicate potential oversold conditions in the short term.
The RSI values (RSI 6 at 32.37, RSI 12 at 47.68, and RSI 24 at 54.80) suggest that while the price might be nearing oversold, it isn’t entirely oversold yet, especially considering the RSI(6) is closer to 30.
2. Long Position Setup:
Entry: Around $3.35 - $3.40. The price near the lower Bollinger Band and recent low ($3.3548) could be potential entry zones for a long position if the price shows signs of reversal.
Stop Loss: Below $3.30. Setting the stop-loss slightly below recent lows and the lower Bollinger Band (LB: 2.5919) to manage risk if the price continues to decline.
Take Profit: Consider taking profit in the $3.85 - $4.00 range. This is slightly below the moving average line and allows for a reasonable reward-to-risk ratio if the price rebounds from oversold levels.
3. Short Position Setup:
Entry: Around $3.50 - $3.60. This level is close to the middle Bollinger Band and could act as resistance after a recent drop.
Stop Loss: Above $3.65. Placing the stop-loss just above recent highs to manage risk in case of an unexpected reversal.
Take Profit: Consider taking profit near $3.20 or even down to $3.00 if bearish momentum continues.
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