Following a daily major gain, Alpaca temporarily halted bleeding after 9 days of fallout. It currently appears strong, but is likely to break lower following a newly formed bearish pattern on the daily chart.
Alpaca is considered one of the top gainers (if not the biggest) during the recent rally in altcoins following an over 20x increase within two weeks.
However, the buying pressure stopped following a long-wick rejection at $1.28 in late April. The price nosedived, but managed to stay above $0.16 in the first week of this month. Holding this price level as support, it resurged and pushed briefly above the $0.7 level in the second week.
A rejection occurred again and the crypto lost momentum throughout that week. It advanced selling this week and further dipped to the $0.15 level yesterday. Today came with a relief following a major gain in the last 24 hours, and as we can see, it is now looking strong on the day.
Despite the recent drops, it is still up by 6x on a monthly. But looking at the current price action, it has formed a double-top pattern on the daily chart. A break below the $0.15 level should validate more bearish moves in the coming days.
Alpaca’s Key Levels To Watch
Source: Tradingview
On the way down, the $0.147 level is providing support. A drop below it could slide us to $0.0876. The key level to watch for a retest is $0.061. If a rebound fails there, it may roll back to the bottom level of $0.028.
Towards the upside, the $0.266 level is the closest resistance to watch on the daily chart. A resurge above this weekly resistance should rally us through $0.4 to $0.727 before reclaiming the $1.28 high, where it faced a rejection in April.
Key Resistance Levels: $0.266, $0,727, $1.28
Key Support Levels: $0.147, $0.0876, $0.061
- Spot Price: $0.205
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/alpaca-finance-price-analysis-prediction-may-20-alpaca-recovers-13-amid-sell-off-but-bigger-dip-is-ahead/