Why I Sold My xMoney (UTK)Why I Sold My xMoney (UTK)
When it comes to crypto trading, timing is everything. My decision to sell xMoney (UTK) was based on a series of clear signals from my technical analysis, showing that it was time to exit before the market turned against me. Here’s a breakdown of the key reasons behind my trade:
0. Entry: The 20EMA - 50SMA Crossover on the 4-Hour Chart
I initially bought xMoney at the 20EMA crossing above the 50SMA on the 4-hour timeframe. This is a classic bullish signal indicating potential upward momentum, and it delivered as expected, with the price moving parabolically soon after.
However, trading isn’t just about knowing when to enter—it’s about knowing when to get out.
1. Strong Sell Signals on Overbought Indicators
As the price surged, I noticed strong sell signals suggesting overbought conditions. The market had moved too fast, too soon, and was primed for a correction. Ignoring these signals would have been a mistake, especially after such a sharp parabolic run.
2. Bearish Divergence on the 4-Hour Chart
One of the clearest signs of a potential reversal was the bearish divergence on the 4-hour chart. While the price was making higher highs, the RSI (Relative Strength Index) was showing lower highs, signaling weakening momentum. This divergence often precedes a downturn, and I wasn’t willing to take the risk of holding through it.
3. Weekly Chart Resistance at the 200EMA
Looking at the bigger picture, the weekly chart showed that the 200EMA could act as a strong resistance area. In crypto markets, higher timeframes like the weekly chart often dictate the overall trend, and ignoring this potential barrier would have been reckless.
4. Weekly Oversold Sell Signal
To add to my conviction, there was also a sell signal on the weekly chart, indicating that the pair was overextended and due for a correction. This reinforced my belief that the upward momentum was unsustainable.
5. Gains Locked: 396% Profit
Selling at the right time allowed me to lock in a massive 396% gain on this trade. Recognizing when to exit is just as important as knowing when to enter, and in this case, the signals all pointed to a clear sell opportunity.
What’s Next? Still Bullish on xMoney (UTK)
Despite exiting this trade, I remain bullish on xMoney (UTK) in the long term. For now, I’m waiting for a Fibonacci retracement and observing Market Maker movements to identify the next optimal entry point. These tools will help me determine when the price has reached a strong support zone, providing a new opportunity to re-enter.
Lessons Learned: Stay Ahead of the Market
One of the biggest lessons I’ve learned in trading is to always stay one step ahead. By analyzing the charts and recognizing potential reversals before they happen, I was able to exit my position at a profit. If you wait for the market to confirm what’s already happening, you’re often too late. Anticipation is key.
Trading is about discipline, preparation, and acting on the signals your strategy provides. Selling xMoney at the right time reinforced the importance of trusting the charts and staying ahead of the market curve.
REMARKS: DYOR
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Good Luck and have fun,
The CryptoSignalScanner Team
