Siacoin (SC) Breaks Out From Resistance Line, Remains Inside a Range

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Siacoin (SC) has been decreasing since April but has bounced at the $0.01 horizontal support area. 

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It broke out from a descending resistance line afterwards and is trading inside a range between $0.0145-$0.02.

SC bounces at support

SC has been moving downwards since reaching a high of $0.063 on April 17.

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However, it seemingly stopped its descent by bouncing twice at the $0.01 horizontal resistance area. It did so on June 22 and July 21. 

So far, it has reached a high of $0.02, doing so on Aug. 1.

Despite the bounce, technical indicators in the weekly time-frame are bearish. The Stochastic oscillator has made a bearish cross, the RSI is just below 50 and the MACD is decreasing.

The 0.382 Fib resistance level is at $0.029. This is the closest Fib resistance level.

Chart By TradingView

Potential breakout

Cryptocurrency trader @TradingTank outlined a SC chart, stating that the token is in the process of breaking out from a descending wedge.

Source: Twitter

Since the tweet, it has broken out from the wedge and proceeded to reach a high of $0.02 on Aug. 1. However, this left a long upper wick in place (red icon) and validated the $0.02 area as resistance.

Since then, it has returned to the $0.0145 support area. 

Unlike the weekly time-frame, technical indicators in the daily time-frame are bullish. The stochastic oscillator has made a bullish cross, the MACD is nearly positive and the RSI has nearly crossed above 70.

Chart By TradingView

The entire upward movement could be an A-B-C corrective structure. 

Besides being inside a resistance area, the $0.02 high was made at the 1.61 length of wave A. Furthermore, the ensuing rejection was sharp, akin to a new bearish impulse. 

A breakdown from the $0.0145 area would confirm that the token is heading low.

Chart By TradingView

SC/BTC

The SC/BTC chart looks similar, with the token being rejected by the 42 satoshi area instead, creating a long upper wick (red icon). 

While a breakout is possible, the most likely scenario would be a revisit of the 30 satoshi horizontal support area.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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