The price of Cryptonex's CNX token fell 2.28% over the past 24 hours to $21.57, down from $22.06 as of July 25, 2023. Here are some key observations from the recent price action:
Rejection at 50-Day Moving Average
Yesterday, CNX rallied up to test resistance around the 50-day moving average near $22.50 before rejection occurred. This resulted in a bearish shooting star candlestick on the daily chart.
Bearish Divergence on Oscillators
Leading up to the rejection, bearish divergence formed on the RSI, MACD, and Stochastics oscillators. This warned of waning upside momentum before the pullback kicked in.
Lower Highs on Intraday Timeframes
On the hourly and 2-hour charts, CNX is putting in a series of lower highs after the rejection. This reflects near-term control by sellers as brief bounces get sold.
Prediction: Rangebound Action Between $20-$22
Looking ahead, my prediction is continued choppy consolidation between support around $20 and resistance near $22. The daily RSI is oversold which points to a potential relief rally, but upside appears limited. A break above $22.50 would be needed to reverse the short-term bearish outlook.
Should You Buy the Dip in Cryptonex Here?
With CNX down 2.28% from recent highs, is this an area to buy the dip? Waiting for a confirmed bottoming pattern around $20-$21 could provide a lower risk entry. Initial support sits around $20.50. Alternatively, dollar cost averaging can reduce timing risks. RSI bullish divergence would help confirm an exhausted pullback.
Can Cryptonex Spark a New Upleg?
While CNX remains in an overall uptrend, the weekly chart shows potential exhaustion signals. The rally is overextended from the 200-week moving average. Additionally, a negative momentum divergence formed on the weekly RSI. This indicates waning upside energy.
In summary, the weekly signals warn of limited further upside without a period of consolidation first. A pullback toward the $18-$20 area would help reset the overbought conditions and allow CNX to base before potentially resuming the larger uptrend. Patience is prudent.
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