The cryptocurrency found a strong retracement after reaching an overbought status a few trading sessions ago. The price managed to find a support level and bounce back to break the resistance at the 61.8% Fibonacci retracement of $3,354.
The Bollinger bands are closing up, suggesting a price consolidation on the $3,400 levels. Volatility should be lower in the upcoming sessions—the price trades in between the bands, indicating that it's at a fair price.
Our parabolic SAR indicator suggests that the downtrend will continue, the short and long-term moving averages continue moving up. Still, the gap between the lines is shrinking, and there could be a crossing if the price drops.
The relative strength index is currently at 50%, which will allow the price to move in either direction, more inclined towards an uptrend, but we will have to wait and see if the breakout sticks.
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