The Balancer (BAL) price has broken out from both a long and short-term descending resistance line.
The breakout from the former is significant, and when coupled with the bullish readings from technical indicators, it suggests that an upward move is likely.
The daily chart shows that BAL had been following a descending resistance line since Sept. 13. After two unsuccessful breakout attempts, it finally moved above this line on Dec 28. Currently, it’s in the process of falling, validating the line as support.
Technical indicators are bullish, supporting the possibility that BAL will move upwards towards the next closest resistance area at $18.
Cryptocurrency trader @mesawine1 stated that the BAL price could rally all the way to $18 if it breaks out above this long-term descending resistance line.
The line and area coincide with those we have outlined. Technical indicators are bullish, supporting the possibility of a breakout.
Breakout From Resistance
The shorter-term six-hour chart shows that BAL has been moving upwards since Nov. 4, when it reached a low of $8.37. The rally continued until it reached a high of $18.27 on Nov. 22. BAL has been falling alongside a descending resistance line since then.
After two deviations below the $12.15 support area (0.618 Fib retracement), BAL began an upward move that caused a breakout above this resistance line.
Currently, BAL is in the process of validating this descending resistance line as support. If it manages to increase above the $14.50 minor resistance area, it’s likely to make another attempt to move above $18.
Even lower time-frames such as the one-hour support this, since they show that:
- BAL has been following an ascending support line over the past week.
- It has completed an S/R flip near $13.20.
Therefore, it should soon move above the minor $14.50 area and increase at an accelerated rate towards $18.
To conclude, the BAL trend is bullish after a breakout from the long-term descending resistance line.
Technical indicators and the price action support a continued rally towards $18, with the rate of increase likely to accelerate above $14.50.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.