Balancer (BAL) has recovered a crucial horizontal level and is likely to accelerate its rate of increase once it breaks out of the current diagonal resistance.
The BAL has declined alongside a descending resistance line since reaching a high of $ 35.72 on September 4th. The downward movement led to a low of $ 12.89 on December 14th.
However, the token has since risen and broke the horizontal area of $ 15.4 on December 17th. This was a very bullish development as it made the previous decline only a deviation. Such deviations are often followed by significant movements in the other direction.
BAL has almost reached the descending resistance line which is currently at $ 20.50.
BAL technical indicators on the daily horizon support the continuation of the bullish movement. Both RSI and MACD are increasing, and the former has even passed 50 (green icon). It is a bullish sign that very often precedes significant bullish movements.
The main resistance zone is between $ 27 and $ 29. It is created by the Fib retracement resistance level of 0.618 (white) and a horizontal resistance zone.
Once BAL breaks out of the current descending resistance line, it is likely to move towards that level.
BAL wave number
Cryptocurrency analyst @CryptoCapo_ tweeted a BAL chart, indicating that the correction is complete and the token is expected to rise towards $ 18 and potentially $ 33.
While the long-term tally doesn’t seem definitively clear, the drop from September 4 to December 4 is likely a corrective pattern. This means that a bullish movement is expected.
If the described decrease was part of a short-term correction, the BAL would have to rise to at least $ 34, giving the A: C waves a 1: 1 ratio.
If, however, the decline completes a longer term correction, as noted in the tweet, the BAL would rise to a new all-time high.
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