A note: $ENA broke below the MA200 on the daily chart (0.1323).
People often ask how to read moving averages, so here’s my take.
Long-term moving averages like the MA200 are widely watched, partly because so many people keep an eye on them. When the price approaches one, volatility often becomes more pronounced.
The same moving average can have different reference value for different coins: the more liquid and widely followed a coin is, the more pronounced the price swings around its moving averages tend to be.
It’s more prudent to look for confirmation from multiple indicators than to rely on just one, but no number of indicators can provide a definitive conclusion.
People often ask how to read moving averages, so here’s my take.
Long-term moving averages like the MA200 are widely watched, partly because so many people keep an eye on them. When the price approaches one, volatility often becomes more pronounced.
The same moving average can have different reference value for different coins: the more liquid and widely followed a coin is, the more pronounced the price swings around its moving averages tend to be.
It’s more prudent to look for confirmation from multiple indicators than to rely on just one, but no number of indicators can provide a definitive conclusion.