Technical Overview
Time Frame: 15-minute interval.
Current Price: 0.5997, trading below the 200-period MA (0.6228). This suggests a short-term bearish trend with the price unable to reclaim its moving average.
Chart Pattern: The second chart highlights a descending channel or downtrend since the high around 0.90, following a strong initial rally within an ascending channel.
Key Observations
Trend Analysis:
The price has transitioned from an uptrend (ascending channel on the left) into a downtrend, now trading consistently below the 200-MA.
Lower highs and lower lows in recent sessions confirm bearish sentiment in the short term.
Support and Resistance:
Immediate Support: The horizontal zone around 0.5900 is providing short-term support. A breakdown below this level could lead to further downside pressure.
Immediate Resistance: The 200-MA (0.6228) and descending trendline from the highs act as key resistance areas.
Momentum Indicators:
RSI (Relative Strength Index): At 48.05, the RSI is neutral, indicating neither overbought nor oversold conditions. However, it's leaning slightly bearish as it hovers below the midpoint (50).
MACD Histogram: The MACD shows weak momentum with a potential bearish crossover forming, suggesting that selling pressure could increase.
Volume:
Volume has been steadily declining compared to the initial rally, indicating weakening market interest. A breakout or breakdown would need a spike in volume for confirmation.
Scenario Analysis
Bullish Scenario:
If the price rebounds from the 0.5900 support and breaks above the 200-MA, it could target the 0.6500 level as the next resistance.
Confirmation would require a bullish MACD crossover and RSI moving above 50.
Bearish Scenario:
A breakdown below 0.5900 could lead to a drop toward the 0.5500 or lower levels, depending on selling pressure.
RSI moving below 40 and a confirmed MACD bearish crossover would validate this move.
Conclusion
ACT/USDT is currently in a corrective phase after a strong rally, with short-term bearish momentum dominating. Traders should watch:
The 0.5900 support zone for a potential rebound.
Volume and momentum indicators for confirmation of the next move.