Most of the crypto market is in the red, with some of the major altcoins down 3% and more. When the market is going down like this, many traders are running scared. However, the level-headed trader knows that these can be the best times to buy.
Stalled US/China talks spook market
News out of the US on Thursday, that trade talks between the US and China had “stalled”, has not gone down well for the crypto market so far on Friday. A change to risk-off sentiment has resulted, and crypto is generally down across the board, with traders probably waiting for the US stock market to open so they can assess how far this news will impact traditional markets, and thereby crypto.
$SOL a valid buy at $162
Source: TradingView
The $SOL price has fallen through the ascending trendline and is currently holding at the major $162 horizontal support line. An M chart pattern has ominously formed. If $SOL falls through the support, the target for the M pattern would be back at $137.
However, all the short-term Stochastic RSIs as far as the daily are in an oversold condition. With $SOL resting on some solid support after a 13% correction, a buy at this level with stop loss in place is a valid move. Bulls would be aiming to target a higher high above $187, but this is also major resistance and would be a good place to take profits.
A great place for a $SUI buy
Source: TradingView
In the daily chart, a lot of positives are coming together for $SUI. The price has recently wicked down to touch the 50-day SMA (blue line) and the bottom of the descending channel. This is also a good horizontal support level that coincides with the 200-day SMA (red line). With the indicators lines in oversold territory for the Stochastic RSI, and the correspondence of strong supports for the price, this would appear to be a great place to buy. Stop loss would be underneath the 50-day SMA.
Very good buy signal for $DOGE
Source: TradingView
$DOGE looks like a strong buy right now. There is some to-ing and fro-ing between bulls and bears, showing that this level means a lot to both. It’s the bulls that are expected to come out on top though, given the strong support, and given that the Stochastic RSI indicators have bottomed. The last time there was a battle at this level, the Stochastic RSI indicators were at the top, and the price still went up.
At the very bottom of the chart, the RSI reveals that the indicator line is just nudging below the 20.00 level. Whenever this happens in the 4-hour time frame it’s generally a very good buy signal.
Could things worsen when the US stock market opens?
Could US markets open and negative stock prices make more of an impact across the crypto market? Of course this is possible. However, the current pause in talks could just be that some kind of impasse has been reached, and that it might take a while longer for it to be circumvented. Putting in stop losses is a good way to limit the downside should things deteriorate.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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