The coin is retreating under pressure from the double peak configuration. We've lost two key Fib levels - the 786 ascending and the 382 descending, which could have serious implications for the asset. Globally, we still maintain a bullish structure even despite a correction of over 40%, as we're in a bullish flag configuration and its invalidation zone is the support at $0.7272, the loss of which would lead to the breakdown of the formation and the loss of relevance of the bullish trend.
Above the 382 Fib descending level, there's a gap and if the buyer can break the configuration of the descending triangle in which we find ourselves, we can expect a rapid growth of 20%. In the last month, we have been trading sideways with no significant changes, and the Choppiness Index (CHOP) indicator values have approached 80 points - a high level of trend roughness. Нowever, the momentum is diminishing and soon volatility should return to the market, deciding the fate of the asset.
The moving averages have formed a death cross, just like the lines of the Directional Movement Index (DMI) indicator. The Volume Delta is slightly positive and supports the upward movement of the asset from current levels, adding confidence to the buyer. The volumes are low and this, in turn, is a concern because with such volumes, asset growth is impossible. The long-term liquidity magnet is located at the top - the $1.2965 mark.
Locally, the buyer is winning. We're approaching the upper boundary of the descending channel and descending triangle in an attempt to reclaim the 382 Fib descending level. The instrument is partially dependent on BTC, which can also make its own adjustments to the asset's direction.
Summing up, the situation has stabilized, but there's no clear dominance of either side. The buyer needs to break through the triangle and channel on the long side to reach the gap area and grow by 20%+ in a few candles. The seller needs to push us below $0.7272 for mirror purposes. It is necessary to react to these two levels.