The Serum (SRM) price has broken down from a long-term support area and could decrease to a new all-time low.
The SRM price has decreased since reaching an all-time high price of $13.73 in Sept. 2021. The downward movement led to a low of $0.12 in Nov. 2022. This amounts to a fall of 98%.
Additionally, the downward movement caused a breakdown from the long-term $0.85 resistance area. The SRM price experienced a sharp fall during the FTX bankruptcy in Nov. 2022, since it was one of the biggest listings on the FTX balance sheet, with $2.2 billion in SRM holdings.
Moreover, the weekly RSI broke down from its bullish divergence trend line (green line) and is moving downwards.
The all-time lows create the final support area at $0.11. A decrease below this area would take the Serum price to bearish price discovery.
The SRM price prediction is considered bearish until SRM reclaims the $0.85 area.
SRM Price Prediction: Short-Term Relief Before Breakdown
The technical analysis from the short-term six-hour chart provides a more bullish outlook.
Between Nov. 9 and 13, the RSI generated a significant amount of bullish divergence. This was the catalyst for an upward movement that is still ongoing. Measuring from the Nov. 14 low, the Serum price has increased by 150%.
However, the preceding drop resembles a five-wave downward movement. This suggests that the SRM trend is bearish. If so, the bounce will end between the $0.41-$0.50 resistance and the downward movement will continue. The resistance is created by the 0.382-0.5 Fib retracement resistance area. The area could be reached in the next 24 hours.
Reclaiming the $0.50 area would invalidate this Serum (SRM) price prediction and suggest that a breakout attempt at the $0.85 area is expected.
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