Ray’s outlook appears extremely bearish on the daily chart following a major collapse in the past weeks. Testing a five-month low this week, it currently in a consolidation mode as it decides on where to head next.
Following a significant breakdown from a head-and-shoulder pattern on the daily chart, Ray witnessed its biggest loss (in late February) since the start of the drop and retraced slightly to $3.1 after a three-day calm.
Releasing more pressure from this retracement level last week, the price collapsed again and closed last week’s trading well below the $2 level. Volatility increased this week and the price rolled over to the $1.5 level.
This level has produced support for days and Ray is now consolidating above it. A continuous breakdown could roll the price back to last year’s low before regaining strength. If the price increases from the current trading level, we may see a retracement to $2 before advancing bearish.
If Ray continues to consolidate, the price may stay calm for days before deciding on the next direction. As of now, it appeared to have entered an extremely oversold condition on the daily chart. That said, it is important to note that the trend is still in favour of the bears in the short term.
Source: Tradingview
Aside from $1.62 that served as minor resistance since Tuesday, Ray’s key resistance level lies at $2. Reclaiming it could allow a retracement to a hidden resistance of $2.5 before tapping $3.1. The main level for a retracement lies at $4.2 – where it initiated a breakdown last month.
Losing the holding $1.5 level, the potential support to watch is $1.23 – last year’s low. A collapse there should bring us to $1 and even beyond.
Key Resistance Levels: $2, $2.5, $3.1
Key Support Levels: $1.5, $1.23, $1
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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