REN has shown several bullish signs on the daily time frame, and it is possible that the price will initiate a strong bounce as a result.
REN has been falling since reaching an all-time high price of $0.89 on Feb. 2021. The downward movement has been contained underneath a descending resistance line.
Most recently, it caused a rejection on Nov. 2021 (red icon). Afterward, the price broke down from the $0.28 area, which had been providing support since Oct. 2020. This led to a low of $0.12.
Interestingly, the weekly RSI reached a low of 33, which is the lowest ever recorded value.
Despite this reading, REN has to reclaim the $0.28 area in order for the trend to potentially be considered bullish.
Future REN movement
Crypto analyst @knicktrader tweeted a chart of REN, stating that a small bounce is expected.
The daily chart supports the possibility of a bounce. There are three main reasons for this:
- The price has broken out from a descending resistance line
- The daily RSI has broken out from a descending resistance line (dashed)
- The daily RSI has generated bullish divergence (green line)
If the upward movement accelerates, the closest resistance area would be at $0.28. This is the 0.382 Fib retracement resistance level.
Finally, the six-hour chart shows that the price has been trading inside a symmetrical triangle since May 11. It is currently very close to the resistance line of this triangle.
As a result, a breakout above it would be expected to initiate the aforementioned bounce and confirm the interpretation of the daily time frame.
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