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.
The BAL has declined alongside a descending resistance line since reaching a high of $ 35.72 on September 4th. The downward movement led to a low of $ 12.89 on December 14th.
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 almost reached the descending resistance line which is currently at $ 20.50.
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 zone is between $ 27 and $ 29. It is created by the Fib retracement resistance level of 0.618 (white) and a horizontal resistance zone.
Once BAL breaks out from the current descending resistance line, it is likely to move towards this level.
BAL wave number
Cryptocurrency analyst @CryptoCapo_ tweeted a BAL chart, indicating that the correction is complete and the token is expected to rise towards $ 18 and potentially $ 33.
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 described decrease was part of a short-term correction, the BAL would have to rise to at least $ 34, giving the A: C waves 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.
