Ren is one of the more interesting charts in the space right now, especially when looking at it on the weekly and daily time frames over a long period of time. It is rangebound outside of a two month deviation where it broke out and then fell back into the range, bouncing off the same spot it had previously for over a year. It has a very definitive structure with a range high, range low, and “EQ” which is the equilibrium of the range itself.
As things stand on the weekly chart it dropped swiftly into the range and bounced off the range low where it bounced prior to last weeks close. It looks to still be attracted to that range low entering the new week. Sellers still have control for the time being as it’s been in a very impressive downtrend negating the entire run up in under two months.
On the daily chart we get a clearer picture of how the price action has developed. Each bounce off the range low is met by the range high. Any deviation from the range is short lived and has always returned to being inside the range.
Price recently came back into the range and when it tapped the range low it shot up in hours to the EQ of the range in which it was rejected again. Because of the strong relentless selling pressure the range low should be watched carefully as a break of it can lead to significant drawdown and potential price discovery.
Overall it is more bearish than bullish based off the momentum and strength of the move. A break in either direction should lead to some strong impulsive moves in the future. For now the play is in the ranges.
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Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.
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