Price dropped all the way to $5, coming close to the bottom achieved in late October 2017 at $3.
Will price continue falling, or will a rally ensue? Let’s find out.
A look at the indicators on the weekly chart shows that the RSI is at the lowest level it has been, close to 30, without any clear divergences on any side.
The MACD is going up strong and has rejected a bearish cross.
Finally, price faces resistance from the 7-period Moving Average which corresponds with the resistance area at $15.
A look at the 3-Day chart provides more information about where price might be heading.
There is a small amount of bullish divergence in the RSI, and the MACD is heading above 0 for the first time in 2018.
However, the price is facing resistance from both the 7 and 21 period moving averages and the cloud.
A look at the Daily chart supports the scenario laid out in the 3-day chart.
There is a significant bullish divergence in the RSI and the MACD is very close to 0.
Price has moved past the 7-period moving average and is facing resistance from the 21,50 and 200 period MA and the cloud.
Finally, the 6-hour chart shows that price found resistance at the 200-period MA and promptly reversed.
The resistance from the MA corresponds with the last area of resistance formed by the top in late November.
- The price fell below the support area at $18-22.
- Short-term indicators are bullish.
- There is short-term resistance at $8-10.
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