- 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.
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.
The MACD indicator on the mentioned time frame is currently neutral despite the break under the trendline support.
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.
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.
The MACD histogram is trending marginally lower on the daily time frame, although a strong down move has yet to occur.
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.
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.
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