The price of PIVX gained substantially when the project’s core development team announced a release on December 21st and claimed to be the first project in the world with Bulletproofs implemented Zerocoin protocol. Now, the price has found resistance and technical indicators suggest the price has entered into the corrective phase.
The Accumulation-Distribution index shows that PIVX tokens have recently been distributed heavily as the price move higher. The sharp decline in the index (Chart 1) proves that traders have already booked their profits and dumped tokens on the market as price moved into resistance.
The clearest indicator of the ongoing corrective phase was bearish divergence observed with Relative Strength Index and Commodity Channel Index., both of which show an inverse correlation with the last impulsive wave. (Chart 2)
Elliot Waves suggest completion of the 5-wave cycle, which is going to be likely followed by the ABC drawdown in the coming days. In the process, the first corrective wave (A) seems to have occurred already as seen in Chart 3 above.
The price of PIVX must move above the zone of resistance, whose coordinates lie between 0.00025 and 0.00035 BTC. On the other side, the critical Support level can be found at 0.00013 BTC. If the price falls below this level, then PIVX would fall into the dead zone and it will be very difficult to recover from there.
Verdict: Short-term bearish, long-term neutral
Comment: The price may still continue to move high in the very short term but in the long-term analysis, it is showing signs of weakness and impending correction. Long-term traders and investors can wait for the price to break above the zone of resistance as a confirmation.
By Vishal Chawla
Disclaimer by the Author:
This is not an investment advice or promotion to ICO or Cryptocurrencies or any other investment in any form. These views are based on Author’s own research and readers must execute caution & suggested to do their own research during any investments.