cryptoknowmics.com
SCRT coin price is under extreme selling, evident by the continuous bearish candles. But is it too early to sell, or we can see a bullish reversal?
Secret Network is an open-source, permissionless, open-source blockchain built on privacy research and papers written initially at MIT in 2015. This includes "Decentralizing Privacy," one of the essential papers in the blockchain space, with over 2,000 academic citations.
Past Performance of SCRT
After a fantastic bull run of more than 130 percent in more than just a week, the SCRT coin price failed to rise above the $11 mark. Thus, resulting in the downtrend in action.
The downtrend breaks below the 61.80 percent Fibonacci retracement level with a bearish engulfing candlestick. Thus, the fallout indicates a downfall to the 50 percent or even 38.20 percent Fibonacci level.
SCRT/USD Daily Chart
SCRT Technical Analysis
From a different point of view, the retracement to the $7 mark can be considered the retest of the bullish breakout of the previous swing high. However, the engulfing candlesticks undermine this theory.
However, the $6.35 and $5 pivot points wait below the price to provide some demand. And, the $8.5 and $10 levels are above the price in case of a bullish reversal.
The RSI slope moves sideways slightly below the central line within the "nearly oversold" zone in the daily chart. Moreover, the fall in the RSI slope is consistent with the downfall showing no divergence between them. Hence, the RSI gives a sell signal for the SCRT token.
As per the DMI indicator, the positive DMI is above the negative DMI, indicating an uptrend still in action. However, the ADX falls from 63 to 41 mark, showing the trend is losing strength.
The MACD indicator also gives a sell signal as MACD and Seller's line fall in a bearish alignment. Moreover, the intensity of the bearish histograms is increasing steadily.
Compiling all the technical indicators, the selling pressure is increasing, which can shortly below the $5 mark.
Upcoming Trend
The rejection near the $11 mark pushed the uptrend back to the $7 mark, in turn increasing the selling pressure in the SCRT coin price. However, the 50 percent Fibonacci level still stands, and so does the chances of a bullish reversal.
Hence, traders can find entry spots near the $6 mark as the chances of a reversal await near the level. Till then, the shorting opportunity at current prices can prove profitable. Moreover, the fallout of the $6 mark will drive the prices lower to the next following support levels at the $5 and $3 mark.