traded lower on Monday and during the Asian and European sessions Tuesday, breaking below the 165.00 support barrier. The crypto has been trading below a downside resistance line since May 20, while in the bigger picture, it continues to hover below the prior upside support line drawn from the low of Dec. 11. In our view, this paints a negative picture.
We believe that the bears may get encouraged to push the battle towards the 131.00 zone soon, which is defined as a support by the low of May 19, the break of which could target the 117.50 barrier, marked by the low of Jan. 27. If they are not willing to stop there either, then we may see a test near the psychological round figure of 100.00, which provided support between Dec. 21 and 24.
Shifting attention to our short-term oscillators, we see that the RSI hit support near 30 and turned up, while the MACD remains below both its zero and trigger lines. Both indicators detect negative speed, which supports the case for further declines, but the fact that the RSI turned up from near 30 suggests that a small corrective bounce may be in the works before the next negative leg, perhaps for another test near the short-term downside line taken from the high of May 20.
In order to start examining a larger correction to the upside, we would like to see a break above the peak of June 3, at around 197.60. This will also take above the pre-mentioned short-term downside line, and may initially pave the way towards the 225.00 area, marked by the high of May 20. Another break, above 225.00, could see scope for extensions towards the 259.50 barrier, marked by the inside swing low of May 17, or the prior upside support line taken from the low of Dec. 11.
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