2020-9-30 23:32

The DIA price has broken out from a descending resistance line, possibly signifying the end of its correction.

Mantra Dao (OM) has formed considerable bullish divergence but has yet to flip a vital resistance area.

DIA

The DIA price has been declining since it reached a high of $4.92 on Sept 2. The fall is continuing, with a low of $1.17 reached on Sept 24.

After the low, the price began a small upward move, which caused a breakout above a descending resistance line in place since the previous high. This could indicate that the correction has ended, and DIA will move upwards shortly.

If so, the closest resistance areas would be found at $1.95 and $2.85, respectively. These levels created a range throughout Sept 7 – 21, from which the price eventually broke down.

A reclaim of the $1.95 area would send the price back inside this range again. However, a fall below the Sept 24 low would take DIA to a new all-time low and bearish price discovery.

DIA Chart By TradingView

Cryptocurrency trader @CryptoMichNL outlined a DIA chart, stating that the price is trading near support at $1.25 and could soon begin to move upwards towards $1.85, which is the resistance area we outlined above.

Source: Twitter

However, technical indicators don’t indicate a rally since both the RSI and MACD are declining, the former being below 50. There is also no bullish divergence on either.

Therefore, besides the breakout from the descending resistance line, there are no other bullish signs for DIA.

DIA Chart By TradingView Mantra Dao (OM)

On Sept 15, OM broke down from the $0.26 area, which had previously been acting as support. This eventually took the price to a new all-time low of $0.164, reached on Sept 25.

The RSI has generated considerable bullish divergence, and the MACD is moving upwards with strength, both signs that the price will begin an upward move. However, until the price successfully reclaims the $0.26 area, we cannot state with confidence that the trend is bullish.

OM Chart By TradingView

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