EURI is experiencing a rollercoaster of price action, with significant volatility in recent days. After a sharp drop on the 23rd of September, the token is showing signs of recovery. But is this rebound sustainable, or is it just a temporary bounce before further downside? Letâs dive into the technicals to get a clearer picture.
Key Levels to Watch
- Resistance: The nearest resistance sits at 1.1156, marked by the 25-period MA. This level will be critical in determining whether the recovery can push higher or if the price will face another rejection.
- Support: The support zone is currently at 1.1137, aligned with the 7-period moving average. If the price breaks below this, we could see a retest of the recent lows around 1.1100.
Moving Averages: Mixed Signals
The 7-period MA is sitting just under the current price at 1.1137, while the 25-period MA is at 1.1156, forming a tight range. These MAs are offering mixed signals, as they are neither strongly trending up nor down. A break above the 99-period MA at 1.1144 could signal a shift in momentum back towards the bulls, while failure to do so might lead to more sideways or downward action.
MACD: Bearish But Flattening
The MACD still shows bearish momentum, with the MACD line at -0.0006 slightly below the signal line at -0.0007. However, the histogram is beginning to flatten, suggesting that the selling pressure could be weakening. If the MACD crosses into positive territory, it could ignite a fresh rally toward the next resistance levels.
Volume: Strong on Dips, Weak on Recovery
Volume has been spiking during the dips, as seen with the large volume candles on the 19th and 23rd of September. Interestingly, the recovery has been on much lower volume, suggesting that the bulls might not be fully in control yet. Watch for a volume increase during any further upward movement, which would indicate stronger buying conviction.
Whatâs Next?
For Short-Term Traders:
- Risk-Managed Trading: The tight range between 1.1137 and 1.1156 offers a great opportunity for breakout traders. A clear move above 1.1156 could lead to a test of higher levels, while a break below 1.1137 could expose the price to further downside. Keep stops tight, as volatility remains high.
For Long-Term Investors:
- Cautious Accumulation: For long-term holders, it may be wise to wait for a more definitive signal before accumulating. Buying dips near the 1.1100 support zone with a long-term horizon could yield strong returns, but be cautious of further downside risk.
Conclusion: Recovery or Temporary Bounce?
EURI is at a critical juncture. A breakout above the 1.1156 resistance level could confirm that the bulls are back in control, while failure to hold above 1.1137 could mean more consolidation or even further downside. What do you think will happen next? Letâs discuss in the comments, and donât forget to follow for more market updates! đđ„
