Ethereum Classic (ETC) had a great week. During this period, the price of ETC grew by nearly 30% and in this respect it was one of the best in the market along with Lido (LDO) and Solana (SOL) with 55 and 35% growth.
According to Valx and quoted by Ambcrypto, despite the strong performance of this currency, its daily price chart shows oversaturation.
Analysis of Ethereum Classic confirms this issue. Ethereum Classic’s Money Flow Index (MFI) at the time of writing is 88. In addition, the relative strength index (RSI) has also reached 63.79 during an upward trend. Both of these metrics refer to the overbuying of this currency.
At this point, it is natural for buyers’ power to decline; Because there is no new demand for this currency and buyers are not able to maintain or increase the price of Ethereum Classic. Often this situation leads to alignment of sellers and price reduction.
Bollinger Bands (BB) situation indicates strong volatility of ETC. Although Ethereum Classic managed to break the upper band of this indicator, which generally indicates the continuation of the upward trend, at the same time, the gap between the upper and lower bands has widened, indicating high volatility.
When the volatility of a cryptocurrency is high, it is prone to significant price changes in a short period of time. This issue adds to the risk of buying or trading this asset.
However, the Average Directional Index (ADX) has some interesting information. According to this indicator, the power of buyers is very high and sellers may not be able to break it in the short term.
At the time of writing this article, the power of buyers according to this indicator was 31.48, which is much more than the power of sellers (13).
Despite the recent rise in the price of Ethereum Classic, the weighted sentiment towards the currency remains negative. This means that despite the growth in the value of ETC since the beginning of the year, investors still have a negative sentiment towards the currency. The existence of negative weighted sentiments is mainly considered as a prelude to price reduction.
The article Ethereum Classic price growth continues? The first time in the blog Valx. appeared.
