Long term health of DEFI in a critical moment - VWAP version
Anchored VWAP measures the average profitability of the selected period.
In a nutshell, if price is above the VWAP line, majority of traders are in profit. This shows that there is a bullish momentum and can attract more and more people (money attracts money). However, when many traders are in profit, the selling pressure can be higher which can result in a price decline.
Same way goes for when price is below VWAP line, majority of traders are in a loss, which show the bearish momentum as people are trying to exit on each pull-back and get their money back. However, when sellers are exhauster we can see a bottom and change of trend.
Right now, traders are almost at break-even.
The million dollar question is : Are traders going to take advantage of the low price to buy at discounted prices and break this resistance at 1,900 usd OR sell, get their money back and buy again later on?
There is a big support level at 1,110 usd in case bears take control.
Follow for more Updates.
In a nutshell, if price is above the VWAP line, majority of traders are in profit. This shows that there is a bullish momentum and can attract more and more people (money attracts money). However, when many traders are in profit, the selling pressure can be higher which can result in a price decline.
Same way goes for when price is below VWAP line, majority of traders are in a loss, which show the bearish momentum as people are trying to exit on each pull-back and get their money back. However, when sellers are exhauster we can see a bottom and change of trend.
Right now, traders are almost at break-even.
The million dollar question is : Are traders going to take advantage of the low price to buy at discounted prices and break this resistance at 1,900 usd OR sell, get their money back and buy again later on?
There is a big support level at 1,110 usd in case bears take control.
Follow for more Updates.
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