A look at the logarithmic Weekly chart shows us that price has fallen all the way into the $20-$25 area of support created by the highs of 2014. There is a substantial amount of support here.
If price were to break down below $20, the next level of support would be in the $3-$5 area, which was the trading range for 18 months after the 2014 bear market.
Staying with the Weekly timeframe, a look at the indicators paints a bearish picture. Price has fallen below the 200-period average for the first time (Solid white line), and there have been two bearish crosses between the 7-21 and 7-50 period averages respectively(yellow arrows).
It is worth checking if the price will make/reject a bearish cross between the 7-200 period averages. Furthermore, we have another bearish cross in the MACD, implying that there is room for a continued fall.
A look at the daily chart gives us a more positive outlook. There is solid bullish divergence developing in both the RSI and the MACD. However, the price is facing resistance from both the 7 and 21 period moving averages.
If price were to bounce, there is strong resistance at the $50 level, which is the previous level of support from which price broke down in a descending triangle in the 14th of November.
A look at the 2hr chart finally gives us a structure in which price is trading in. Price is currently moving in in a symmetrical triangle, and there is a strong support line in both the RSI and the Chaikin Oscillator.
- Price is currently in the $20-25 area of support.
- The next area of support is $3-5.
- Bullish divergence developing in medium timeframes.
|DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.|