Sell pressure has been relentless and even if there were some bullish pressure at any time frame, then every high it makes is another shorting opportunity. From the weekly chart, we can easily see that sellers are taking away gains faster than the rate at which buyers pumped prices in Q4 2017.
What we can acknowledge with certainty is that buyers couldn’t muster enough buy momentum to repel sellers from closing below the main support line-the middle BB. Because of that, we can now see that prices are actually trending below the 1st Fibonacci retracement line and August highs.
All in all, given the rate of depreciation, it doesn’t make sense buying this token because the general sentiment is toxic. In my view, the faster prices depreciates towards previous resistance now support at $400, the faster the $230 or August highs will be retested for a 100% price recovery-mind boggling!
Unless otherwise, recovery can only be reassured with close above $900-and that is almost $500 away from current valuation. That’s a tall order.
Anyhow, in the daily chart, consequent bear candlesticks are banding along the lower BB meaning bears are in charge.
Even though there was expectation of buy pressure at around $525-as marked by the Fibonacci retracement levels, prices closed lower and are on the path of recovering all the gains made in Q4.
From a Fibonacci perspective, if there is a 100% price recovery, then the best prices can gain even if there will be a strong recovery of prices is a close back to $1100 or the 23.6% retracement level anchored at current high lows.
In the previous week we have seen how the middle BB and the main resistance trend line have been complementing each other and every time either is tested, liquidation happens.
At the moment, prices is testing August highs-a key support line in our analysis and suppose there is a break below that, sellers should pick up their positions at around $380. Conversely, any recovery and we can see prices test our trend line and that is where it is ideal to short.