Price Action:
The price has formed a higher high, indicating bullish momentum.
The chart shows Fibonacci retracement levels, suggesting the recent bullish rally has reached a critical resistance level (around 1.3602).
RSI Divergence:
The RSI has formed a lower high despite the price moving higher.
This is a classic bearish divergence, often signaling weakening momentum and a potential trend reversal.
Fibonacci Levels:
The price has retraced significantly from the low at 0.5718 to the current high.
The key Fibonacci levels (0.618 and 0.5) have acted as support during the rally.
The price is currently near the 0.236 (1.1086) level, which may act as resistance.
Trend Channel:
The price has broken out of the downtrend channel, which initially signaled bullishness.
However, the divergence with the RSI suggests caution, as the upward momentum may be losing steam.
Conclusion:
The combination of bearish divergence and resistance at the Fibonacci level suggests that a correction or pullback could be imminent.
Watch for a potential break below the previous support levels or confirmation with increased selling volume before considering a bearish move.
If the price manages to sustain above the resistance, it could indicate bullish continuation despite the divergence.
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