The cryptocurrency broke the support level at the 61.8% Fibonacci retracement and fell to its lowest level since May 12th. The price continues to trade below the short and long-term moving average, suggesting that the pair would continue the downwards trend.
The Bollinger bands are not very wide which will decrease volatility in the short term, the pair trades closer to the lower bands which is likely to act as a support level and prevent the price from sinking any further. The price could reach $58 before it starts a recovery.
The relative strength index is at 34%, which will allow the pair to move downwards a few points before entering an oversold status. Typically, after a financial instrument's RSI falls below 30% a comeback is expected, but we have seen cryptocurrencies stay oversold for a few sessions before they start recovering. Our parabolic SAR indicator suggests that the pair is likely to continue moving downwards in the short term.
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