The chart displays a long-term downward trend followed by a period of consolidation at lower levels, potentially signaling a base formation. Key points to analyze include:
Analysis:
Price Action: The price has shown a recent uptick after prolonged sideways movement, indicating a possible breakout attempt from its consolidation phase.
RSI Indicator: The RSI is approaching the overbought region, currently at around 64.86, signaling growing bullish momentum but nearing a level where caution is needed.
Support and Resistance: The next resistance level is around $2.00, while the support remains near $1.50.
Prediction:
Bullish Scenario: If the breakout sustains with higher volume, the price could test resistance levels near $2.50 or even higher, depending on market momentum.
Bearish Scenario: If the RSI enters overbought conditions without sustained buying pressure, the price might pull back to retest the $1.50 support.
