The Gods Unchained (GODS) price has increased significantly over the past two days but has yet to clear a crucial diagonal resistance level.
The Epic Games store listed the NFT card game on June 22. This is a big development since the store boasts a 230 million user base. Interestingly, the price had surged by 35% just before the listing.
GODS Price Approaches Crucial Resistance
The GODS price fell to an all-time low of $0.08 on June 10. The low culminated in downward movement under a descending resistance line in place since April 2022.
However, the price bounced immediately after the low, creating a very long lower wick in the process. This is considered a sign of buying pressure. But, despite the bounce, the GODS price did not break out above the resistance line.
Doing so is required in order to confirm the bearish trend.
Nevertheless, the RSI supports the continuing increase. When evaluating market conditions, traders use the RSI as a momentum indicator to determine if a market is overbought or oversold and to decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator is increasing and is above 50, a sign of a bullish trend.
Additionally, it broke out from a descending trendline (white), another sign that an upward movement is likely.
Will GODS Price Break Out?
The technical analysis from the short-term six-hour time frame shows that the GODS price is in the process of breaking out from a shorter-term resistance line. If this occurs, it could catalyze an increase that causes a breakout from the longer-term resistance line.
Additionally, it would confirm that the GODS price has completed a five-wave decrease (black). To determine the direction of a trend, technical analysts use the Elliott Wave theory, which involves studying recurring long-term price patterns and investor psychology. So, a significant rally is likely to occur if the count is correct.
The first area for a potential local top would be at the 0.618 Fib retracement resistance level at $0.26. Since this would cause a breakout from the long-term resistance line, the GODS price would be expected to clear the Fib resistance eventually.
Despite this bullish GODS price prediction, a drop below $0.086 (red line) will mean that the trend is still bearish. In that case, the GODS price would be expected to fall to a new all-time low near $0.050.
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