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.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.