Since recording an all-time low of 0.0295 USDT in the first week of January 2020, CVT has experienced almost a phenomenal 50x increase in price. This occurred when the CyberVein price reached its all-time high of 0.14499 USDT on August 31, 2020 on the Malta-based OKEx cryptocurrency exchange.
Bullish momentum
Recent higher highs on the MACD histogram, as well as a fresh new uptrend on the RSI indicator on the weekly chart, show that CVT has not lost any of its bullish momentum. While the weekly chart has been in the overbought area (above 70 on the RSI indicator) for four weeks, this is common to see in bull markets. Indeed, CVT spent a full nine weeks in this overbought area during its last big run up. Even after correcting down below the overbought area in its previous run, the weekly chart maintained its higher high and higher low structure.
Psychological 0.01 level
CVT is currently in price discovery mode. This is to say that the price has never been in the area in which it is now. This makes it very hard to predict how much higher it can go. It is during times like these when some of the few tools that technicians have to go by are psychologically-relevant numbers. In this case, we are attempting to close above the 0.1 USDT level but have not yet had a weekly close above it. A weekly close below this level might lead to a period of consolidation which could provide a good entry point at lower levels.
Waning volume
The past several weeks have seen very low volume compared to the previous leg up. This is a warning sign that this current move up does not have as much credence to it as the previous large move up which we saw in March, April, and May. It does not imply that the CyberVein price will correct but it does indicate that there is less confidence in this move up than there was in the last ones this year.
Good level to buy CVT
While it might be tempting to buy CVT now, it is not safe to buy assets which are in the middle of a leg up as they can have large corrections yet still remain in bullish territory. The best time to buy is when there is a pull back or a consolidation of price action.
The 13 EMA on the weekly chart has proven to be a solid support during the past six months. Five weekly candles have flirted with this level with no candle closing below it. If the price comes back to test this level, an entry could be considered.
Altcoin Buzz interviewed the founder of Cybervein on the Altcoin Buzz YouTube channel on 25 May.
