The cryptocurrency started a promising rally at the end of October, where it broke two resistance levels in our Fibonacci retracement. The pair began to move sideways at the end of the second third of the month, which carried for a few sessions; now, we are seeing a significant loss for the cryptocurrency.
The Bollinger bands are wide, they started to shrink slightly, but we should still expect high volatility in the upcoming days. One of the reasons the pair lost so much in the last three days is because the price was trading higher than the upper band, suggesting that it was relatively high.
The relative strength index is at 43%. It did not enter an overbought status before it dropped; however, this will allow the crypto to continue its uptrend in the short term. We need to wait and see if this retracement is testing the support at the 23.6% Fibonacci retracement to make a trading decision.
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