Alpha Finance (ALPHA) is making another attempt to move above a horizontal resistance area which, if successful, will greatly accelerate the upward move.
ALPHA has fallen into a descending parallel channel since Feb. 6 when it hit an all-time high of $ 2.94. Such channels often contain corrective movements. Therefore, an outbreak across the canal is likely. This possibility is supported by the fact that the price is trading in the upper part of this channel.
Technical indicators are increasing. The RSI, a momentum indicator, has just bounced off the 50 line.
The MACD, formed from the short-term and long-term moving averages (MA), is in positive territory. However, the uptrend appears to have stopped, which could be taken as a sign of weakness.
ALPHA is currently facing resistance at $ 1.23. This is the 0.618 fib retracement level from the previous downtrend. If the price tries to cross this level, it will likely go up faster.
Daily ALPHA / USDT chart | Source: TradingView
Short term outbreak
Trader @thebull_Crypto outlined the ALPHA chart, indicating that the token is about to break above the long-term horizontal resistance area at $ 1.21.
Since the tweet, ALPHA has made several attempts to move across this zone (red symbols). However, they were all unsuccessful.
In addition to the horizontal resistance, the $ 1.23 area is also the 0.618 fib retracement resistance. Therefore, a breakout above it should strongly accelerate the upward momentum.
ALPHA / USDT 6-hour chart | Source: TradingView
A look at the shorter 2-hour chart shows a descending parallel channel. Similar to the daily timeframe, a breakout on this channel would also be the most likely move.
ALPHA / USDT 2-hour chart | Source: TradingView
The wave number suggests that ALPHA could initiate the third wave (orange) of a bullish impulse with five waves. The number of partial waves is shown in black.
If the wave count is correct, the first resistance range is between $ 1.94 and $ 2.04. It was found using the 0.618 Fib resistance from the all time high and should give 1: 3 waves in a 1: 1 ratio.
A fall below the September 21st low of $ 0.79 (red line) invalidates that particular wave count.
ALPHA / USDT 12-hour chart | Source: TradingView
You can get the price from ALPHA. see Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto