The cryptocurrency has been on a four-day losing streak; it managed to break a support level at $1.23284, which is the 50% Fibonacci retracement.
The Bollinger bands are opening up and starting to move down, which is often a downtrend sign. The price trades closer to the lower band but not close enough to consider it oversold.
The relative strength index is at 46%, which will allow the pair to move in either direction. The price seems to be finding support at the 36.2% retracement; this will be a key level as it will dictate whether or not the downtrend continues.
Our Parabolic SAR indicator suggests that the downtrend will continue in the short term; however, this is a lagging indicator. The gap between the short and long-term moving averages is decreasing, but they have not crossed yet; hence we cannot consider this downtrend as a reversal, only as a temporary pullback.
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