The cryptocurrency has been on an uptrend for the last seven sessions. The price managed to break two resistance levels at the 38.2% and the 23.6% Fibonacci retracements.
The Bollinger bands are not very wide, but they are opening up at the edge, indicating that the trend could continue; however, the price is trading above the upper band, suggesting that it is relatively high, which could push traders with long positions to close, driving the price down.
The relative strength index is currently at 62%, which still has some room to grow before entering an overbought status. The mixed signals between the Bollinger Bands and the RSI could confuse investors; we believe the price could continue rising in the short term and even enter an overbought status before we see a price retracement.
Our parabolic SAR indicator suggests that the price will continue its upward trend, while the moving averages support this.
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.