The cryptocurrency is on a three-day losing streak in which it's down more than 15%, the pair managed to break two important support levels; the 38.2% and 50% Fibonacci retracements at $3,667 and $3,291 respectively, indicating a trend reversal.
The Bollinger bands are very wide and volatility has been high, we expect this to continue in the short term. The pair trades below the lower band suggesting that the price is relatively low, we might see a comeback in the next few days and potentially break the 3,291 now resistance level.
The relative strength index entered an oversold status, currently, at 28%, this will likely boost the price up in the upcoming sessions as investors would want to buy the dip, the price could drop some more before it makes a comeback, the next support level is at 2,917.
Our parabolic SAR indicator suggests that the price will continue to fall, but this is a lagging indicator, we don't know for sure how much lower the price will go, but we expect a surge in the short to mid-term.
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