It seems like the 1.78 support level is being tested repeatedly, indicating that this zone could be a critical level for buyers. We have seen price consolidation around this area after a significant downtrend, suggesting that buyers are trying to hold the price here.
Looking at the technical indicators like RSI and MACD, there are signs of potential exhaustion in the selling pressure. The RSI is showing oversold conditions across several periods, which often suggests a potential reversal or at least a temporary relief rally. MACD, while still negative, is showing signs of flattening, which could be an early indication that the downward momentum is slowing.
Volume also suggests that the sell-off might be losing strength, as the downward moves are not accompanied by a significant spike in volume. This supports the idea that sellers may be running out of steam around this 1.78 level.
A buying opportunity could arise if the price can hold above the 1.78 support level and show some upward movement with increasing volume. It would be important to watch for a bullish crossover in the MACD and for RSI to start moving upwards from oversold levels. However, itâs crucial to keep stop losses tight as breaking below 1.78 could result in further declines.
In summary, the 1.78 level appears to be a key area to watch for a potential bounce, and there may be a buying opportunity if the price holds and the indicators align for a reversal. Keep an eye on momentum and volume to confirm the strength of any upward move.
