While this is the lowest price has been after the fall, it is not clear if we have made a bottom. The price has been following a steadily declining support line, depicted by the solid green line.
Long-Term OutlookMoving forward to the 3-day chart, we can see that price is facing resistance from both the 7 and 21 period moving averages and a thick cloud.
Furthermore, while the RSI is <30, the lowest it has been, there is no bullish divergence developing yet. Finally, there is bullish divergence developing in both the MACD and the Chaikin Oscillator.
Medium Term OutlookA closer look at the 12hr chart shows us that price broke down from the longstanding support area of $0.18.
Furthermore, the price went back up to touch and validate the support line (downward pointing yellow arrow), which now acts as resistance.
It is worth keeping an eye on whether the 7 and 21 period MA’s make a bullish cross, or if it is rejected and the price continues falling.
Short-Term OutlookA look at the shorter 2hr time-frame gives us a solid price structure.
Price has been following a steadily increasing support line (green line) and is possibly forming a symmetrical triangle.
It is worth checking which way price breaks out of this pattern.
- Price has fallen 97% since the January highs.
- Price is following a steadily falling support line.
- Possible symmetrical triangle in the short term.
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