The cryptocurrency has been on a downtrend since May 2021, the asset showed some signs of a reversal in August and then again in early November but it was never completed, the downtrend continues and we might see the price drop to the low 100’s in the short term.
The Bollinger bands are wide and moving down, which often indicates a downtrend, the price trades above the lower band, suggesting that the price could fall to the 160s in the short term, if the bands continue to open, we could see a bigger loss in the midterm.
The relative strength index is at 41%, which will give the pair enough room to continue falling, once it reaches 30% then the price might start a small recovery. The short and long-term moving averages just recently crossed, indicating that the downtrend will continue.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
