Hey Everybody, I hope you’re all doing good. Today, I am here with Technical Analysis of Serum (SRM).
Serum is a Decentralized Exchange created by the team of FTX Exchange. Launched in August, SRM reached an ATH of $3.78 on September 1st but have been on downward path ever since currently trading at $1.02 at the time of writing. Now what? Let’s do a complete Analysis of SRM against USDT as well as against BTC.
By the looks of this chart, we can see that its trading below the 1 level mark on Fibonacci means the price is below than where it was when the last uptrend started. The current price of $1.02 is acting as a support and the price should rise form here considering the Bitcoin dominance is also going down signaling strong movement for Altcoins.
The RSI is also sitting pretty, just above 40 giving it ample amount of space to run and touch the next resistance level at $1.84 which could be our first take profit area. We expect it to consolidate there for a bit or even make a retracement before making a higher move towards $2.50.
However, If price goes further down from here, we’ve got another support level at $0.77 which was it’s previous low just few days ago where it may very well form double bottom pattern and then rise again.
Now let’s take a look at the SRM/BTC chart and try to make some sense of it. As you can see from the first glance, there is not a lot of support or resistance zones as SRM is relatively a new coin.
But from whatever data we have, we can see that after breaking a long term downtrend, it is trading in a small parallel zone and currently sitting at its support from where we expect it to again bounce back and break this zone eventually to continue its movement towards 1.00 level on Fibonacci which will act as a first resistance level and also our first take profit opportunity.
All in all, we expect it to break the 1.00 level and possibly touch the 0.786 level before New Year Day, which would make it a 300% increase from current level.
Finally, looking at the above chart, we can see that Bitcoin dominance is sitting at a crucial support level. If it breaks this support 57% mark is very much in sight and if that happens it’s fair to say that SRM will make an upward movement and touch 0.786 Fibonacci levels on both SRM/USDT and SRM/BTC.
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NOTE: It is not a financial advice. Do Your Own Research before opening a trade.
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