The cryptocurrency lost 13.06% during the last four trading sessions, we consider this to be a temporary retracement which will help the pair continue the uptrend in the short term.
The Bollinger bands are closing up, which could indicate a price consolidation at the current level. Volatility could be lower than in previous sessions, but we still expect the price to move quite a bit. The pair is finding a support level at our 38.2% Fibonacci retracement of $1.06267. If the support can hold the fall, it could allow the pair to continue its uptrend in the short term.
The relative strength index is recovering from a near overbought status; the current level is at 55%; this will also allow the pair to move in either direction, potentially upwards if support is found or downwards if the support level is broken in the following sessions.
The short and long-term moving averages are moving upwards, and the gap between the lines is expanding as the uptrend has much more weight on the average since it's a lot higher than recent losses. We would be on a general uptrend if the pair finds support and can break the 50% retracement.
Our parabolic SAR indicates that the price would continue to move downwards for the short term; we will have to wait and see if the support is broken.
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