After breaking out of a descending triangle
to the downside, around 14 November, it is reasonable to suspect that history will once again repeat itself. This cryptocurrency's price is forming something between a descending wedge
and a descending triangle
. With that being said, it is less rational to expect a break of prices to the upside, since there has been a large sell-off since forever! And you know what they say on Wall Street: "never try to catch a falling knife". Therefore, i wouldn't advise entering any long positions on this asset. I would rather wait for an exhaustion of the buying activity and enter into a short position. As usual, price action is key. I would also feel safe entering short once the prices bounces of the top of the descending triangle's resistance and the when RSI
reflects overbought conditions.