The Serum (SRM) price has broken down from a crucial support level and has been falling since, creating a new all-time low. Meanwhile, Penta (PNT) has done the same, but the possibility of a reversal is higher.
Serum (SRM) – Deviation Above Resistance
SRM has been declining since Sept. 1, when the price reached a high of $3.79. Throughout the fall, the price had been following a descending resistance line, from which it purportedly broke out on Sept 30.
However, the price fell back below the resistance line shortly afterward and fell below the $1.50 support area. This has sent the price towards a new all-time low and into new price discovery.
Cryptocurrency trader @TheEuroSniper stated that he has entered an SRM long in anticipation of a rally, giving targets of $2.25, $2.45, and $2.70 for the ensuing upward move.
However, as seen above, SRM failed to sustain the higher prices and has decreased below the line since.
Furthermore, technical indicators do not show any signs of a reversal.
- The MACD is negative and decreasing.
- The RSI is decreasing and is oversold, but has not formed any bullish divergence.
- The Stochastic Oscillator has rejected a bullish cross and is decreasing.
Therefore, unless the price manages to reclaim the $1.50 area, which seems unlikely, the trend is considered bearish, and lower lows are expected.
Penta (PNT) – Falling Alongside Resistance
The PNT price has been falling since June 24, when a high of $1.40 was reached. Shortly afterward, the price began a rapid downward move, following a descending resistance line.
At the beginning of October, the price broke down from the $0.53 support area and proceeded to reach a new all-time low.
Technical indicators on the daily time-frame look more bullish than those for SRM but have not confirmed the beginning of an upward move.
While the MACD is increasing and the RSI has formed bullish divergence (unconfirmed), the Stochastic Oscillator has made a bearish cross and is decreasing.
Measuring the decline alongside the descending resistance line, it seems that the price is in the process of completing a bearish impulse (shown in blue below), currently trading in wave 5.
Therefore, even if the breakout from the descending resistance line is just a correction, it would be customary for the price to retrace towards the 0.5 – 0.618 Fib levels between $0.87 – $0.99.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.