Aeternity / USD Technical Analysis: Can't Get A Break
Share this article
- Aeternity is heavily bearish in the short-term and is under immediate selling pressure
- An important trendline break has occurred on the four-hour time frame
- Medium-term technical outlook is bearish, with a head and shoulders pattern looming over the AE / USD pair
AE / USD Short-term price analysis
Aeternity is heavily bearish in the short-term and risks further losses towards its all-time trading low after recently falling under a key trendline. The creation of a double-top pattern formation is also creating bearish pressure on the AE / USD pair.
A sustained move under the pair’s all-time trading low could see Aeternity losing over twenty-five percent of its current market capitalization.
Pattern Watch
The head and shoulders pattern across the four-hour time frame should be watched closely and is currently the most dominant theme in the short-term.
AE / USD H4 Chart (Source: TradingView)
MACD Indicator
The MACD indicator on the mentioned time frame is currently neutral despite the break under the trendline support.
RSI Indicator
The Relative Strength Index indicator is bearish although selling momentum appears to have stalled.
AE / USD Medium-term price analysis
Aeternity is heavily bearish over the medium-term horizon and has been under almost constant selling pressure since the cryptocurrency’s sharp decline in November, which saw a large amount of its market capitalization decimated.
The AE / USD pair is trading below its 50-day moving average, which highlights that selling pressure persists, while indicators on the daily time frame also show that bearish momentum is gathering pace.
A bearish head and shoulders pattern is building on the daily time frame, which appears to mimic the larger head and shoulders seen on the right hand side of the daily chart.
Pattern Watch
Daily price closes under the head and shoulders pattern neckline should be watched closely as they will provide a strong signal that a further move lower will likely occur.
AE/USD Daily Chart (Source: TradingView)
MACD Indicator
The MACD histogram is trending marginally lower on the daily time frame, although a strong down move has yet to occur.
RSI Indicator
The Relative Strength Index is starting to turn lower, a bearish break under the neutral line should signal further weakness in the AE / USD pair.
Conclusion
Aeternity is bearish in the short and medium-term and may soon test towards its all-time trading line.
A sustained break under the neckline of the head and shoulders patterns seen on the four-hour and daily time frames should trigger the next heavy sell-off in the AE / USD pair.
Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.
Share this article
