The price of Civic (CVC) skyrocketed on Mar 12, 2019. Prices subsequently dropped as part of an apparent correction; however, at the time of writing, Civic’s price is still trading at a higher level than before the Mar 12 spike.
While the retracement is not yet finished, it is expected that prices stabilize at a level above that prior to the breakout. For more information, keep scrolling and read on!
Key Highlights For Date
- The price of Civic (CVC) has been on a gradual uptrend since Mar 5.
- It initiated a rapid increase on Mar 12.
- The MACD and SMAs initiated a buy signal.
- There is resistance near $0.1 and $0.112.
- There is support near $0.065 and $0.072.
Ascending Support Line
The price of CVC on Bittrex is analyzed at one-hour intervals from Mar 5 to Mar 12.
The price made a low of $0.575 on Mar 5. It has made successively higher lows since. Tracing these lows gives us the ascending support line.
It can effectively act as a floor tracing the lower limits of price for a given period. Theoretically, the price should not drop below this line. In the case of Civic, growth occurred at the rate predicted by the support.
However, on Mar 12 a rapid price increase ensued which took the price to a high of $12.2—the current high of the year. This high is well above the support and amounted to an 85% increase in price within 30 minutes. A subsequent decline followed and has been continuing for the last several hours.
Despite this drop, the price of CVC is still trading well above the levels before the Mar 12 spike. It is likely that the price of CVC will continue to drop toward the support line. However, it is unlikely that the price will drop below this line. It is possible that new lows above that currently traced may develop.
The price made a high of $0.627 on Mar 5. Since then, it has proceeded to make higher highs. Tracing these highs gives us an ascending resistance line.
The resistance line can act as a ceiling to price in the same way support acts as a floor. Price theoretically should not break resistance. If this occurs, rapid price increases often occur.
Such is the case with CVC. The Mar 12 spike led the price well above the resistance. Despite recent drops, it is still trading well above this line. New support and resistance may be developing, but this cannot be determined at the current moment. Price may return to the parallel channel created by the resistance and support traced on the chart above.
If prices do not return to the channel but remain above the resistance line, new resistance and support will develop. At the current time, this appears likely.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. and sell signals.
Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs.
On Mar 11, after touching the support line for the third time, price initiated an upward move which took it above the 21 and 50-period moving averages. During the same interval, the MACD line moved above 0. This effectively triggers a buy signal, indicating that the current trend is over and an uptrend could begin.
This would be invalidated by a price movement below the moving averages and a MACD cross below 0.
Using these indicators, it is likely that the price will now breakdown below the current support. On the contrary, though prices may continue decreasing, an upward trend is likely to continue at the completion of the correction.
The price of CVC on Bittrex is analyzed at 12-hour intervals from Aug 12, 2018 to Mar 12, 2019.
This is done in order to better visualize resistance areas which could provide a reversal.
The support areas are found near $0.071 and $0.065 respectively. These provide likely areas of reversal when the price stabilizes.
Resistance areas are found near $0.1 and $0.112. While price initially broke through both of them, the increase was not sustained and is currently trading below them. If the price initiates another upward move, these two areas would present a likely place where it could come to a stop.
Summary of Analysis
Based on this analysis, it is likely that the price stabilizes at a level above the short-term support line and pre-breakout levels. If the price does not break down from the support line visualized in section one, this prediction will be validated.
Do you think the price will reach the $12 high again? Let us know in the comments.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.