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ERN Token Price Analysis: ERN Token Price is Trading above the Long-Term Supply Zone after Breaking it, Will it Continue?

Analytics

www.thecoinrepublic.com 03 October 2022 07:05, UTC
  
Reading time: ~3 m

  • The ERN token price as per the price action is upper bullish. 
  • The ERN token price is trading above the supply zone on a daily time frame.
  • The ERN token price formed a double bottom pattern before triggering a strong breakout.
Source: ERN/USDT by tradingview

The ERN token price is trading above the demand zone on a daily time frame, as the token price managed to break the supply zone despite the heavy fall in the global markets. The ERN token price is trading in a small range for the past 72 hours. The token price is forming higher low and higher high formation on a daily time frame. The ERN token price has bounced off the demand zone with a strong bullish candle formation. At present, the token price is forming an indecisive candlestick pattern from the past 72 hours after breaking the supply zone. At present, the ERN token is trading above the 50 and 100 MAs. The token price rose from the breakout zone on a daily time frame, as a result, it rose above the 50 and 100 MAs. Moving upwards the token price can be seen taking strong support from these MAs.

At present, the ERN token price is trading in the middle of the Bollinger band indicator. The token price bounced off the lower band of the Bollinger band indicator. The range of the Bollinger Band indicator has narrowed indicating a massive move in the upcoming trading days. The token price has also risen above the 14 SMA. Volumes have increased as the token price broke the supply zone. An investor should remain cautious and wait for a proper bounce back if the breakout zone.

The ERN token price is forming a falling wedge pattern on a daily time frame

Source: ERN/USDT by tradingview

Average Directional Movement Index: ADX curve has been rising on a higher time frame as the token continues to rise. In a daily time frame, the ADX curve has dipped out of the 30 mark and has turned upwards. As the token price hovers above the long-term supply zone on a daily time frame. It is a positive sign for the token price. Investors should wait for a positive candle formation at the breakout zone for a further bullish move. 

Supertrend: The ERN token price is trading above the supply zone after bouncing off the demand zone. Recent bullishness resulted in the token price breaking the small-term supply zone. Previously, the ERN token price was trading below the super trend sell line but recent bullishness has led to the token price breaking it and forming a super trend buy line. Moving upwards the token price can be seen resting at the super trend line. 

Moving Average Convergence Divergence: MACD indicator has given a positive crossover as the token price rose to the supply zone. The blue line crossed the orange line on the upside. This has resulted in the token price moving up strongly in a daily time frame. Once the token price starts moving up again after consolidation on a daily time frame as seen on the chart, the MACD lines can be seen widening supporting the trend. But if the token price falls further below the breakout zone the MACD indicator can be seen triggering a negative crossover.

Conclusion

The ERN token price has broken out of the bullish chart pattern as per the price action. Despite the recent fall in the global market, the token price rose above the supply zone. The technical parameters are also showing bullish signs. It remains to see if the token price will continue to move in the bullish trajectory or face bearish pressure and fall.

SUPPORT: $10 and $10.50

RESISTANCE: $13 and $13.70

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.


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