In-depth analysis of the CELO/USDT chart using the VSA (Volume Spread Analysis) method

Volume Spread Analysis (VSA) is a technical analysis method based on the relationship between price, volume, and price spread to determine the behavior of large traders (smart money). In the CELO/USDT chart, we will analyze the following factors in detail:

1. Market Overview Current price: 0.647 USD (decreased by 5.55% compared to the previous session). 24h Fluctuations: The highest price is 0.692 USD, the lowest price is 0.634 USD. Trading volume: 31.86M CELO with decreasing trading activity in this price range. The market is in a period of mild recovery after a strong sell-off from the peak of 1.130 USD. Based on the chart structure, there are signs of potential support around 0.634 USD.

2. Analyze according to VSA Phase 1: Distribution Before reaching the peak of 1.130 USD, there was a strong increase in volume and price range, especially with large bullish candles. However, the appearance of long candlesticks and tails with large volume is a sign of profit-taking from large traders (smart money). This is a distribution sign when big money pushes the price up to sell off. Phase 2: Sharp Decline (Sell-off) After reaching the peak, the price quickly dropped from 1.130 to 0.762 with large red candles and high volume. This indicates strong selling pressure from smart money. The volume during this period indicates that small investors are being caught up in the downward trend and panic selling. Stage 3: Accumulation In the price range of 0.634 - 0.692, the volume is decreasing, while the price is fluctuating within a narrow range. This is a typical sign of accumulation as large institutions start to absorb the selling pressure. Some small candles with long lower tails indicate supply testing - a signal that selling pressure has weakened. Significant indicators on the chart:
3. Supply Check Candle (Testing): A small bearish candle with low volume appeared near the support zone at 0.634. This is a positive signal as the excess supply gradually diminishes.
4. Low volume in a narrow range: The market is "consolidating", signaling the possibility of a breakout or a deeper decline.

3. Current price trend Moving Average (MA): MA(7): 0.638 (short-term) is moving sideways, indicating that the price is consolidating within a narrow range. MA(20): 0.664 (medium-term) is above the price, confirming that the bearish trend is still dominant. MA(99): 0.738 (long-term) still remains high, no signs of reversal yet. Resistance and support: Nearest resistance: 0.692 USD. Strong support: 0.634 USD (if broken, it may drop to 0.600 USD).

4. Strategic advice according to VSA For short-term investors:
5. Buy when breakout above resistance zone: If the price exceeds 0.692 with a trading volume larger than the 20-day average, this is a confirmation signal from smart money. The short-term price target is 0.762 USD.
6. Check the support area: If the price continues to test the 0.634 zone with low volume, you can buy at this level with the expectation of a rebound. For long-term investors:
7. Monitor the accumulation process: If the price continues to accumulate around 0.634 - 0.692 with low volume, this is a good opportunity to accumulate when smart money is controlling the supply.
8. Be careful when supporting is broken: If the price drops below 0.634 with large volume, the market may enter the next downward phase. Wait for a clear signal before placing an order.

5. Conclusion The CELO/USDT chart shows that the market is in a consolidation phase after a strong sell-off. Signs of absorption from smart money are clear, but confirmation of a breakout is needed with large volume. The price action in the coming days will be crucial to determine the trend. It is advisable to be patient and wait for clear signals before making big trades. $CELO {spot}(CELOUSDT)