Pullback or reversal? Very easy way to know!
If you're wondering if a dip in those MEME coins is a buying opportunity or a sign the party's over, measuring % price drops during such big rallies is a very valuable tool.
Here's how:
Track the % retracements: During a big rally or steady uptrend, healthy pullbacks typically retrace similar percentages. So, simply measure the size of each dip and compare them.
Identify consistent retracements: If the current pullback falls within the established range, it suggests a potential buying opportunity for a continuation of the trend.
Watch for deepening drops: A price drop that is relatively bigger than prior retracements might signal a weakening trend or a longer consolidation period.
So, use this information to adapt your buy point and risk appetite if you're eager to participate.
Here's an exemple of a previous rally in DOGE
DOGEUSDT -
This is today's drop, which is increasing as I'm writing this post.
DOGEUSDT -
SHIBUSDT -
PEPEUSDT -
