Ray’s bearish pattern has finally played out as expected following a colossal drop to a three-month low today. It appeared extremely bearish on the daily chart due to a double-digit loss.
As recently spotted on the daily chart, Ray formed a head-and-shoulder (H&S) pattern as it slightly broke down a crucial support level of $4.15 during last week’s trading. This support marked the neckline of this pattern but unfortunately failed to break down.
The bulls defended it well and the price bounced back to $5. While the bounce was short-lived due to a rejection, the bears stepped back and mounted pressure, closing last week at loss.
Starting the first day of the week on a sad note, Ray’s supply increased and the price dumped heavily to the $3 level today. This drop has generated a lot of fear and panic over the past hours and the market looks highly bearish.
While this level has provided support, we may see a small recovery before resuming bearish. A continuous breakdown there could lead to a bigger loss on the weekly scale.
Having registered a massive return in the past year, Ray is considered one of the best-performing assets in terms of gain, but is now signalling a reversal following the latest breakdown from an H&S pattern on the daily timeframe.
RAY’s Key Level To Watch
The $3 support level is still holding. There’s a close support at $2.945. A further break could cause more dips to $2.65 and potentially $2.2 before halting bearishness.
A recently broken $3.43 support is now considered as daily resistance. Retaking it could bring a retest at the $4.15 resistance level. There’s also resistance at $5.16.
Key Resistance Levels: $3.43, $4.15, $5.16
Key Support Levels: $2.945, $2.65, $2.2
- Spot Price: $3.1
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.