The cryptocurrency found a strong support level at the 61.8% Fibonacci retracement and managed to break the resistance level at $3,291 on our 50% retracement shortly after. The general trend continues to be downwards but this could change when the breakout is confirmed and the price trades above the short-term moving average.
The Bollinger bands are wide but they are starting to close which will likely bring lower volatility in the short term, the pair traded below the lower band, suggesting that the price was relatively low, which is one of the reasons we are seeing it bounce, the general trend continues to be downwards but this could change when the price breaks the next resistance at $3,662 on the 38.2% Fibonacci retracement.
The relative strength index entered an oversold status and started to climb aggressively after, it is currently at 41% which will allow the pair to continue the uptrend in the short-term, at least until it gets closer to the $3,600 levels.
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