- ETC price is up 28% in the past week.
- However, the price chart readings revealed that everything is overbought.
Ethereum Classic [ETC] It was a strong week, with the price up 28.60%, according to data from CoinMarketCap. This made it one of the best performing cryptocurrencies, along with Lido [LDO]which saw a 55% price increase, and Solana [SOL]which achieved a 35% rise over the same period.
Read Ethereum Classics [ETC] Price forecast 2023-2024
Looming Correction for Ethereum Classic?
Evaluation of ETC’s performance on the daily chart revealed that an imminent price rally could be on the horizon, as the asset was trading at overbought levels at the time of publication.
First, the Money Flow Index (MFI) is seen at 88 at the time of writing. Along the same lines, the Relative Strength Index (RSI) for ETC is pegged at 63.79 in an uptrend. These situations indicated that ETC was overbought.
At this point, buyer exhaustion is common as new demand for the asset wanes, leaving buyers in the market unable to sustain an additional rally. This often causes the bears to regain control and start a price battle.
Moreover, the Bollinger Bands (BB) valuation of ETC showed that the altcoin was highly volatile at the time of publication. Although ETC price broke above the upper band of the indicator, indicating a continuation of the bullish trend, the supply between the upper and lower bands widened. This indicates high volatility.
When the price of a cryptocurrency asset is highly volatile, it is subject to large price fluctuations over a short period of time. This can make it riskier to hold or trade the asset.
Interestingly, a look at the Average Directional Index (ADX) for ETC (yellow) showed that buyers’ power was a solid force that sellers may not be able to reverse in the near term.
This is because it is placed above the +DI indicator (green) and the minus directional indicator (-DI) (red), which form the Directional Movement Index (DMI).
How many ETC can you get for 1 dollar?
At the time of writing, buyers strength at 31.48 is firmly positioned above sellers at 13.00.
Caution is advised
Despite the rally in ETC prices last week, the weighted sentiment has been negative since the beginning of the year. This means that despite the continuous growth in the value of ETC since the beginning of the year, investors still have negative beliefs. A negatively weighted sentiment often precedes a price disadvantage.