Welcome back to the channel everyone, my name is Andrew and today I want to take another look at COTI, that’s COTI, and that stands for the currency of the internet. I’ve covered the basics. What COTI is in previous content? So, if you’re interested in finding out more about COTI check out the link to the content which I’m going to put up about now today, though, we’re just going to have a look at some of the news, that’s out for Codyat the moment and then we’re going to head over to the Chart to see what the technicals are saying but before I start a quick disclaimer. This content is, not financial advice.
It’S for entertainment purposes only. You need to do your own research and analysis before making any investment decisions if you enjoyed the content. If you have any questions, please leave a comment and I’ll get back to you as soon as I can.
We also have a discord server, I’m active on there, so I can answer any questions in more depth on the discord. Server if. That’S something! You’Re interested in I’ll leave a link to the discord server in the description. The last time I looked at COTI was at the beginning of April, when the price was trading around, 43 cents.
I identified that the current upward trend had been broken in the short term and that the price was likely to trend lower before going higher. I recommended averaging into a long position into COTI at the support: levels of 38 cents, 36 cents and as low as 32 cents and although. The price fell as low as uh even 22 cents when. We had the big drop in bitcoin that strategy of averaging in at 38, 36 and 32 cents would have now stood you in a good position. Taking a look at the chart.
I want to show you why I identified the38 36 and 32 cent levels as areas of support and areas, where you could average into the position we can see that the price fell to around 38 cents and. Then we had this strong reaction.
There so you can see that that 38 cent level was providing some good support. So that was a good uh first entry position. We didn’t uh go much higher than around 44 cents before falling back down to the daily 50 moving average, and then we can see that we got some support for a bounce of the 36 cent level, which is our second entry point and below the 36 cent level.
We identified 32 cents as our last entry point level and you can see the reaction. We had when we got down to the 32 cent level for the first time, so you can see how these areas38, 36 and 32 provided good levels of support. And we’re good entry points. Since that time, however, we got the big drop in bitcoin and that took us all the way down to as low as22 cents, just above 22 cents. There, we’ve now moved our trend line down and we’ve identified a trend line, which has started from the beginning of February.
So if I zoom in here, you can see where I’m getting this trend line from there are that many touches on this trendline so it doesn’t have higher reliability over the weekend I’ve seen a real spike in volume, levels on COTI. So I’ve looked over all the news and everything and i and I can’t seem to find out anything really, which is causing this uh spikes in, the COTI price volume.
So if we see here these volume levels are really quite huge. The last time we had similar volume levels were in the rally up from the 18 cent mark, all the way up to 50 cents. So you can see these big spikes in volumes that we were having we had another medium spike in volume there, and that resulted in this fall from 50 cents to 37 cents.
And if you look here we’ve had really quite a high volume. Numbers but we haven’t seen that much movement in the price action. So so I’m not sure why we’ve had these big volume numbers, but that’s just something to keep in mind. There may be some news: that’s coming out recently that I don’t know about. I have checked up on the news for Cody and I haven’t really seen anything of that much interest.
At the end of April. The 29th COTI did announce that they were thrilled to announce the launch of ADA pay on Cardano Shelley mainnet, with the first merchant being the famous charitable organization save. The children but the launch of ADA pay was totally expected, and I believe that that was already priced into the price so that news doesn’t really explain these high volume levels anyway, but ignoring the volume levels.
I want to talk more about the daily 50 moving average because right now the price is just right. On that level, I would say in fact we’re trading just slightly under that50 daily moving average on the 7th of April that50 daily moving average provided good support.
If we look again on the 21st of April when it hit that daily 50 moving average, it provided a lot of resistance there, I’m still long-term bullish on COTI. I think the fundamentals are good and the sound and then I do believe COTI – will go up in the long term but. Technically, we can’t be bullish, while the price is below this daily 50 moving average because. If we look back in the past, we can see how this daily 50 movement average has sort of set the trend previously.
The last time COTI was trading below the 50 daily moving average for any significant amount of time and any significant distance from the 50 daily moving average was that the beginning of November and 2020 and the last time that the price was actually trading, above the daily 50 moving average and then Fell through was at the beginning of September, we can see here and when the price fell through at the beginning of September.
We stayed there all the way until the beginning of November. So, although I think that the price of COTI will go up again to test the all-time highs, eventually, I think in the short term, as we’re trading below this 50 daily moving average, we need to expect some bigger pullbacks at the moment.
I don’t expect these pullbacks to go below the trend line which is coming out around26 cents. At the moment. I would expect COTI to find some support before the trend line and that could be at uh, the 32 cent level again or it could be somewhere in between.
If we look out to around about June, the trend line comes up to around 32cents. Anyway, also when we look at the hourly chart, we have the 20 moving average in green the 15 moving average in yellow and the 100 moving average in purple, and they are hourly moving averages and at the moment, they’re all in line and they are pointing lower. So I do expect some short term pullbacks in COTI. As we know, the price of bitcoin often guides the altcoins. So when bitcoin goes up it can pull up the price of all coins and when bitcoin is falling, it can exaggerate the falls in altcoins as well.
So let’s take a look at it. The bitcoin chart to see what bitcoin is doing since bitcoin fell through its bearish pennant it fell down to the 47 000 cent level. It didn’t quite get as low as the 46 000 support level so that is something to bear in mind.
Bitcoin could possibly move lower to test that in the future, but right now we do have the trend line which has formed from the previous bearish tenant and it seems to be providing some support so we’ll leave that in for now and as well as COTI bitcoin, is trading, very close to its 50 daily moving average we can see on the chart that the 50 daily moving average has been fairly flat for some time. Nowwhich suggests that the price of bitcoin hasn’t really been going anywhere for the last month or so the moving averages are in line, so they are bullish.
We’Ve got green yellow purple and they are pointing higher so as long as, the price can remain above the trend line and also the 56 000 level which is the 50 fib retracement from the last movie from the 14th of April down to the 25thso, the 50 fib level is uh coming In around 56 000so, as long as the price holds above that level, then I would expect bitcoin to go higher. So as with COTI, if the price of bitcoin falls below the 50 daily moving average and also falls below the 50 fib level, then that would signal, a bearish move in bitcoin and that could drag COTI down to its trendline support so that something to bear in mind.
If you’re trading, COTI the best thing, I would suggest, is to keep your eye on bitcoin look at the support. If it gets down to this level around the 56 000 see what the price does, if it falls through sharply, then possibly it would be a good idea to hold off buying any COTI and wait for a pullback if. The price bounces strongly off that level.
And goes on to test the 60 000 level, it may be a good opportunity to buy some more COTI, so we can see as with the price of COTI and bitcoin that they are very close to flipping from bearish to bullish at the moment. There’S this 50 daily moving average that sort of splits, the line between the bears and the balls. My best advice would be especially since the price is trading below the50 daily moving average is to hold off purchasing any more COTI at the moment and just see where the price goes.
If the price goes back above the40 cent level, then it would be a good idea to get some more, but I would hold off now because the pullbacks could be much larger and you stand to gain much more. At the moment the price is trading at around 38 cents.
It’S much better to wait. To see what happens if the price moves to 41 cents you haven’t lost, much you’ve had you’ve lost like three cents, so it’s worth waiting to see where the direction would take us. Because if COTI falls back. It could fall back much further. So you have much more to gain from that.
It could fall back to 32 cents or even all the way to as low as 26 cents. Now it’s not all bad news for COTI the good news since we had this deeper pullback to the 23 cent level. The next target up now has moved higher. The previous target we were targeting at around. A 70 cents, has now moved up to around 80 cents, so just shy of 80cents at 79 cents for price predictions.
I always like to use the 1.618 fib extension level, it’s proved reliable in the past for many of the altcoins. So if COTI does turn bullish and eventually breaks the all-time high, I would expect the next target to be around about the 79cents level, so short term for COTI. I do expect some pullbacks and I would see these as buying opportunities, because I am still very bullish, on the price of COTI going forward. So that’s just my quick update on COTI and the price action that we’ve seen recently.
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