REN’s Weekly RSI Drops to Lowest Ever Level as Price Hits New Yearly Low

REN has shown several bullish signs on the daily time frame, and it is possible that the price will initiate a strong bounce as a result.

REN has been falling since reaching an all-time high price of $0.89 on Feb. 2021. The downward movement has been contained underneath a descending resistance line. 

Most recently, it caused a rejection on Nov. 2021 (red icon). Afterward, the price broke down from the $0.28 area, which had been providing support since Oct. 2020. This led to a low of $0.12. 

Interestingly, the weekly RSI reached a low of 33, which is the lowest ever recorded value. 

Despite this reading, REN has to reclaim the $0.28 area in order for the trend to potentially be considered bullish.

Future REN movement

Crypto analyst @knicktrader tweeted a chart of REN, stating that a small bounce is expected.

The daily chart supports the possibility of a bounce. There are three main reasons for this:

• The price has broken out from a descending resistance line 
• The daily RSI has broken out from a descending resistance line (dashed)
• The daily RSI has generated bullish divergence (green line)

If the upward movement accelerates, the closest resistance area would be at $0.28. This is the 0.382 Fib retracement resistance level.

Finally, the six-hour chart shows that the price has been trading inside a symmetrical triangle since May 11. It is currently very close to the resistance line of this triangle. 

As a result, a breakout above it would be expected to initiate the aforementioned bounce and confirm the interpretation of the daily time frame.

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