"the daily volume of trades has also reduced to pretty much zero" -- but the volume has been increasing on the weekly chart for the last two weeks.
I'm not an experienced chart reader but for the sake of being corrected if I'm wrong, here is how I see it:
Weekly chart:
View attachment 919457
One possible indicator of trend reversal is that we had a volume swell around the late-October early-November low. The downtrend since start of 2017 also appears to have slowed, and the price is pushing to break the top side of the trend/channel that started in June. I'd expect to see higher volume with a green bar to confirm the breakout, but this week we got higher volume and a red bar back towards the trend.
There's a resistance zone at 3.6-3.7. Failing any news, I think we'll continue to drift down next week. Possibly the red rocket will be launched.
I'm envisioning three scenarios in the next few months:
1. Strong move up above 5.1 with a sustained trend on good volume (not just a choppy pump on news). This would be a clear break of the down trend (although the price could go still down again after that).
2. Red rocket to 3.3 bottom but not below, then bounce (on news). If the bounce is sustained, and gets us above 4.6 I think we'd have a double-bottom and that could open the door to scenario (1) and more confidence that we've seen the bottom.
3. Red rocket that goes below 3.3. Possible continuation of downtrend.
IMO.
