ETC/USD hit a new 2020 high above $13.00, downside correction is imminent

Ethereum Classic has gained over 5% to become the growth leader of the day among top-20 coins.
The technical and fundamental indicators imlies that the growth may continue, but the downside correction is imminent.

Ethereum Classic (ETC) is one of the best-performing altcoins today. The asset has gained over 5% since the beginning of the day and hit a new high of 2020 at $13.18. At the time of writing, ETC/USD is changing hands at $12.89 amid strong bullish trend.

ETH social engagement on the rise

Despite the price increase, only 48% of ETC holders are making money at the current price with over 79% of ETC owners keeping the coin for over a year. Meanwhile, the Ethereum Classic’s social engagement reached the highest level in the recent three month and keep growing. At the time of writing, the figure exceeded 6 million engagements, according to the stats, provided by LUNACrush. This metric reflects the total social activity related to the asset. However, a closer look at the sentiments revealed a climbing value of bearish sentiments, which may signal that the coin is ready for a downside correction.

ETC/USD: Technical picture signals that the coin is overbought

From the long-term point of view, ETC/USD broke free from the recent consolidation pattern and printed two big bullish candles on a daily chart. The price has been moving within an upside trend since December 18; however, the bullish momentum started snowballing on January 14 and resulted in nearly 200% of price increase since the beginning of the year.

The RSI on a daily chart has entered an overbought territory, though there are still no signs of reversal, whicj means the price may climb higher before the correction begins.

The nearest resistance is created by $13.00. It is closely followed by the recent high of $13.18. Once this area is out of the way, the upside is likely to gain traction with the next focus on $14.00. On the downside, the support comes at $11.20, which is the lower boundary of the recent consolidation channel. A sustainbale move lower will increase the downside momentum and push the price towards the lower line of the daily Bollinger Band at $10.30.