Balancer (BAL) Reclaims $15 Level After Strong Bounce

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Balancer (BAL) Reclaims $15 Level After Strong Bounce
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Balancer (BAL) has reclaimed a crucial horizontal level and is likely to accelerate its rate of increase once it breaks out from the current diagonal resistance.

BAL has been decreasing alongside a descending resistance line since reaching a high of $35.72 on Sept 4. The downward movement led to a low of $12.89 on Dec 14. 

However, the token has been moving upwards since and increased above the $15.4 horizontal area on Dec 17. This was a very bullish development, since it rendered the previous decrease as a deviation only. Such deviations are often followed by significant movements in the other direction. 

BAL has nearly reached the descending resistance line which is currently at $20.50.

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Chart By TradingView

Ongoing bounce

Technical indicators for BAL in the daily time-frame support the continuation of the upward movement. The RSI and MACD are both increasing, and the former has even crossed above 50 (green icon). This is a bullish sign that very often precedes significant upwards movements. 

The main resistance area is between $27-$29. It is created by the 0.618 Fib retracement resistance level (white) and a horizontal resistance area.

Once BAL breaks out from the current descending resistance line, it is likely to move towards this level.

Chart By TradingView

BAL wave count

Cryptocurrency analyst @CryptoCapo_ tweeted a BAL Chart, stating that the correction is complete, and the token is expected to increase towards $18 and potentially $33.

Source: Twitter

While the long-term count does not seem definitively clear, the decrease from Sept 4 to Dec 4 is likely a corrective pattern. This means that an upward movement is expected.

If the outlined decrease was part of a short-term correction, BAL would be expected to increase to at least $34, giving waves A:C a 1:1 ratio.

If however the drop completed a longer-term correction, as outlined in the tweet, BAL would increase towards a new all-time high price.

Chart By TradingView

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

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