A descending triangle has formed on the CATI token price chart.
Source: TradingView
A breakdown below the $0.73 level could trigger a deeper decline, with the $0.65 level acting as a new support floor. However, if the price breaks above the descending resistance line, it could invalidate the bearish pattern and push the price higher.
The RSI indicates a possible bounce.
Another key indicator to watch is the Relative Strength Index (RSI), which is currently at 42.02. This puts CATI in neutral territory, after bouncing off oversold levels. A reading below 30 indicates that the asset is oversold, but the current RSI suggests that buying pressure is starting to build. This could signal a potential price reversal if momentum continues to build.
While the RSI has not yet reached the overbought zone (usually above 70), its upward movement could attract more bullish investors if it continues to rise. This could increase the likelihood of a price breakout.
Can CATI Price Make a Strong Comeback?
Despite the prevailing bearish signals, there is still potential for a CATI recovery. The oversold RSI indicates that the token is undervalued, and if bullish investors see this as a buying opportunity, Catizen could rally towards its previous highs. The key level to watch is the resistance zone between $0.77 and $0.80. A break above this figure would invalidate the current descending triangle pattern and could lead to a more sustainable upside move towards $1.2.
It is worth noting that the risk of further declines still exists, as the $0.73 level is considered a crucial support level. If it fails, the price of Catizen could drop to $0.65, and continued downward pressure could see the token face a sharper decline.
