Beam (BEAM) has been decreasing since reaching an all-time high price on April 11.
Despite the drop, BEAM has validated the previous breakout level as support. It is expected to bounce from this support level and gradually increase towards a new all-time high price.
BEAM All-Time High
On April 11, BEAM reached an all-time high price of $4.11. While it dropped afterward, the decrease served to validate the $1.50 area as support.
Prior to the all-time high, this same area acted as resistance.
Inside it, the token has created several long lower wicks, signs of buying pressure.
While the MACD is decreasing, it is still positive.
If BEAM bounces as is expected, the next resistance area would be located at $2.58. It is found by using an external fib retracement on the most recent drop.
Short-Term BEAM Movement
The shorter-term two-hour chart shows that the token is trading inside a symmetrical triangle. While this is considered a neutral pattern, it is transpiring after an upward movement. Therefore, a breakout would be more likely.
In addition to this, both the MACD & RSI are bullish, aligning with the daily chart. Therefore, a breakout from this pattern is expected.
Wave Count For BEAM
Cryptocurrency trader @Mesawine1 outlined a BEAM chart, stating that it is in an extended wave three and could go towards $5 and above.
This is a possible count that is still valid. However, due to the triangle we have outlined, it is also likely that the current movement is part of wave four(orange).
In this case, the token would be expected to break out and move towards $2.5 and potentially $3.25. The targets are found using a fib projection on waves 1-3.
To conclude, BEAM is expected to break out from the current symmetrical triangle. Later, an upward movement towards $2.5 is likely.