The cryptocurrency has been on a downtrend since early November, but the asset found the worse of it just a few sessions ago where it went to its lowest level since July 2021, it went down almost 25% in only 5 trading sessions.
The Bollinger bands are wide and they are pointing down which often indicates that the downtrend would continue; however, the pair trades close to the lower band, suggesting that the price is relatively low, many investors might start buying the dip, once it stabilizes a bit.
The relative strength index is at 27%, which situates the pair in an oversold status, another reason for investors to start entering long positions and getting advantage of the dip. This RSI level will allow the price to move upwards freely in the short to mid-term. Since the general trend continues to be downwards we would wait for stronger confirmations in order to place a long trade.
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