The cryptocurrency started an uptrend in the middle of September, and whilst it found pullbacks along the way, it had not seen a loss this big since before the uptrend started. Many investors might close out positions in the hope of reentering at a lower price.
The Bollinger bands are closing up, this often means there is a price consolidation in the way, in which case we will be looking at the 1.15 levels. The price trades in between the bands suggesting that it is at a relatively fair level, but it also trades inside the Ichimoku cloud, indicating market uncertainty in the short term.
The relative strength index is at 47%, a very neutral level that will allow the cryptocurrency to move in either direction for the short term once the consolidation period is over if there is any.
Our parabolic SAR indicator suggests that the price will continue falling in the short term and the short and long-term moving averages are close to crossing, which will confirm a potential trend reversal
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