Frontier (FRONT) Bounces After Creating Double Bottom Pattern

Frontier (FRONT) has been increasing since reaching an all-time low on May 12 and has broken out from both a short- and a long-term resistance line.

FRONT has been decreasing underneath a descending resistance line since reaching a high of $2.05 on Sept 19.  The downward movement led to a new all-time low price of $0.124 on May 12. 

However, the price bounced afterwards and managed to break out from the line on June 25. 

If the upward movement continues, the closest resistance area would be at $0.41.

Double bottom pattern

A closer look at the daily movement increases the legitimacy of the breakout. There are three main reasons for this. 

Firstly, the price has created a double bottom, which is considered a bullish reversal pattern. Secondly, the pattern has been combined with bullish divergence in the daily RSI. The RSI has now moved above 50, in what is considered another bullish sign. Finally, the price has also broken out from a shorter-term descending resistance line.

So, the daily readings and price action both support the continuation of the upward movement towards the $0.41 resistance. 

Short-term FRONT movement

Cryptocurrency trader @CryptoCheFamily tweeted a chart of FRONT, stating that the price could increase since it has moved above some important moving averages (MA).

The price has created a higher low since the tweet (green icon), but has failed to move above the midline of a potential ascending parallel channel (red icon).

But, even if the entire bounce is corrective, an upward movement towards at least $0.35 would be expected. This would give both portions of the increase an exactly 1:1 ratio.

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here.

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