Cartesi (CTSI) is trading above the $0.145 horizontal support area since May 12. However, there is a danger of it breaking down.
The CTSI has been declining since reaching an all-time high of $1.73 in November 2021. The fall so far in May 2022 has led to a low of $0.127. This is a decrease of 92% from the above all-time high.
Besides, the weekly RSI has declined below 50 (red sign) and is now firmly in the bearish zone.
Major horizontal resistance and support are located at $0.32 and $0.10 respectively. The latter acted as resistance in August 2020 and is now expected to provide support.
bearish triangle
The daily chart shows that the price has been declining below a descending resistance line since the beginning of April. Most recently, the line caused rejection on 7 June and 9 July.
Currently, the price is in danger of breaking the $0.14 horizontal support area. Doing so is expected to significantly accelerate the rate of reduction.
Similar to the weekly time frame, the daily RSI is bearish. The indicator is below 50 and is currently breaking out of its bearish divergence trend line (green line). If confirmed, it would support the possibility of a price breakout.
CTSI Waveform Count Analysis
cryptocurrency trader @CVOTrades Tweeted a chart from CTSI, which says that another bounce is expected before the final fall.
The upward movement that began on May 12 looks corrective (highlighted, red), making it likely that this is an ABC formation (red). Afterwards, the ensuing downward movement looks like a five-wave structure. This shows that the underlying trend is bearish.
If a breakdown occurs, the first possible bottom will be at $0.0865, while the next one will be at $0.034. These are formed by the 1.27 and 1.61 external Fib retracement levels when measuring the most recent part of the bounce.
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