The cryptocurrency found a new low for the current year at $1,700, a level we had not seen since June 2021. The downtrend started in early April, and the pair has lost more than 40% so far after it recovered some ground in recent sessions. The pair found strong resistance at $2144.19, which is our 23.6% Fibonacci retracement.
The Bollinger bands are very wide, and volatility should be high in the upcoming trading sessions. The lower band could act as support, which is currently at $1,759; however, the band is likely to continue expanding in the short term.
The relative strength index is at 31%, just outside the oversold status; the gains from the weekend helped RSI rise a bit but not necessarily reverse the downtrend yet. Our parabolic SAR indicator suggests that the price will move upwards in the upcoming sessions. We would need to wait and see if the price can break the resistance at $2,144.
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