CELER (CELR) – Retesting the return line of the descending channel

CELER (CELR) – Retesting the return line of the descending channel

CELER (CELR), the layer-2 scaling platform that brings fast, secure and low-cost blockchain applications on Ethereum, Polkadot and more, has closed below its downward channel extended from its all-time high and is currently retesting the return line as resistance.

The divergence between the 20 and 55-exponential moving average is endorsing this negative movement and the recent retreat is likely to continue as the momentum oscillators confirm that sellers have gained the upper hand. The momentum oscillator is deep in the negative territory and sharply pointing down and the bearish crossover between the DI+ and the DI- is further validating the negative overview.

If the price got rejected by the 23.6% Fibonacci and the channel return line, the market could turn its focus to the 4^th of December swing low at 0.058. A dip past that will pave the way towards the support band formed by the 8^th of September swing low as well as the 8^th of august low at 0.04-0.035. Should selling interest persist, the 0.022-0.017 barrier could then step into the spotlight.

Otherwise, if the price surges over the return line and into the channel again, resistance may originate from the 0.095-0.099 area fortified by the 20-period exponential moving average and the lows preceding it. Overshooting this barrier and closing above the EMA, the 61.8% Fibonacci obstacle at 0.129 could try to impede further advances.

Summarizing, CELR is sustaining a bearish bearing below the downward channel and a dive below December 4^th low could trigger further selling pressures. Even a close back inside the channel will not be able to render the immediate bearish case.