The cryptocurrency had a four-day winning streak where it made 25% but found strong resistance at the 23.6% Fibonacci retracement that prevented the pair to continue climbing. The price is down almost 10% in the last four trading sessions.
The Bollinger bands are closing up again and this will decrease volatility in the short term, as long as the bands are narrow we expect the pair to continue moving sideways. The consolidation period continues and there is not a defined trend on this cryptocurrency at the moment.
The relative strength index is currently at 48% which will allow the pair to move in either direction at the moment. Our short and long-term moving averages crossed three sessions ago indicating an uptrend, however the price now trades below the short term moving average which often indicates a downtrend. The markets are undecided and it could take some time for a clear trend to start.
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.