Technical Indicators Overview:
Price vs 200 MA: The price is currently trading above the 200 MA ($2.074) at $2.270, indicating a neutral-to-bullish stance. However, the inability to maintain a higher high suggests fading momentum.
RSI (Relative Strength Index): RSI is at 47.44, leaning towards the lower side of the neutral zone, indicating reduced bullish momentum and a potential tilt towards bearishness.
MACD (Moving Average Convergence Divergence): The MACD shows negative histogram values with a bearish crossover, signaling weakening upward momentum and a potential reversal.
Support and Resistance Levels:
Support: The nearest support zone is around $2.070 - $2.100, aligning with the 200 MA. A breakdown below this level would confirm a bearish shift.
Resistance: The critical resistance lies at $2.400 - $2.500, which has rejected price movement multiple times in recent attempts.
Volume Analysis:
Volume has decreased, reflecting declining trader participation. A lack of volume near key support levels could increase the likelihood of further declines.
Key Observations:
The price failed to sustain above the $2.400 resistance, showing signs of selling pressure.
The consolidation between $2.070 and $2.500 suggests indecision, but bearish momentum appears to be building.
Market Structure:
The market is showing signs of potential distribution, with lower highs forming. A breakdown from current levels could lead to a sharper decline.
Conclusion and Outlook:
Bearish Case: A drop below $2.070 (200 MA) would confirm a bearish trend, with potential downside targets near $1.800 or lower.
Bullish Case: To invalidate the bearish bias, the price must break and hold above $2.500 with increased volume, signaling renewed bullish momentum.