Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Ethereum Classic (ETC) continued its plunge in the price charts as far as the $21 mark in late January. Since then, however, the bulls have started a gradual recovery.
With the crossing of the $25 horizontal support and the trendline support (white, striped), ETC found a reliable bottom. As buyers continue to build pressure, the alt could aim for a possible test of its 20 EMA (red) in the $26-$27 zone. As of going to press, ETC was trading at $26.35.
AND SO FORTH 4-hour chart
Since last year’s ATH, the bulls have struggled to maintain their lead. The altcoin has since lost more than 88% of its value when it plunged to a nine-month low on Jan. 22. Meanwhile, it lost the vital $30 mark as the bears flipped it into resistance.
However, ETC has posted impressive gains since the January lows, marking a bullish trendline support. The most recent retracement occurred after the rising wedge broke off the USD 30 level. As a result, the 20 EMA continued to act as a barrier to bulls as ETC fell into a down channel (yellow).
The bulls are eager to defend their trendline support, as they have for the past seven weeks. A close below the $26 mark would position ETC for a retest of the $25 mark before picking itself up and challenging its existing pattern. With the widening gap between the 20 EMA and 50 EMA (cyan), a few bearish moves would be warranted before the bulls take over.
Despite the declining trajectory of its price, the RSI almost maintained its peaks. This showed that the underlying buying pressure has not diminished. Now the 39 mark stands as immediate support for retesting.
Furthermore, the OBV previously marked higher spikes while the price depreciated. This also revealed an underlying bullish rebound opportunity.
With the buying influence not taking a corresponding plunge on its RSI and OBV, the chances of a bullish comeback towards its 20 EMA were high. But any close below the USD 26 mark would propel a test of its trendline support before moving higher into the USD 26-$27 zone.
In addition, broader market sentiment and supply chain developments would play a vital role in influencing future movements.
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