This altcoin is showing signs of strength and could explode soon

Alpha Finance’s (ALPHA) trend is clearly bullish and the token is likely nearing the end of its consolidation phase.

Day outlook

The ALPHA has risen since June 22nd. At this point it had just ricocheted off the support line of a descending parallel channel.

The rally and bullish continuation are crucial as the descending channel is believed to be a corrective pattern. This means that once the pattern is complete, the token is expected to resume the previous trend, in this case an upward trend. This channel has formed since the all-time high on February 6th.

Between September 23rd and 28th, ALPHA withdrew and confirmed the center line of the channel as support (green circle). This further supports the possibility of the token breaking out.

Technical indicators are also increasing. The RSI, a momentum indicator, has moved above 50. This is a sign that momentum is increasing. The last time it did so was just before the uptrend from $ 0.4 to $ 1.20.

The MACD, formed by the short and long-term moving averages (MA), is in positive territory and rising. This means that the short-term trend is increasing faster than the long-term trend.

Daily ALPHA / USDT chart | Source: TradingView

Future movement

The shorter term six hour chart shows that the ALPHA has been rejected by the 0.618 fib retracement resistance (red symbol) at $ 1.23. This is not uncommon as the 0.618 Fib reading will often act as a resistance during a recovery.

The main resistance area is at $ 1.46. It is created by the September highs and coincides with the resistance line of the descending parallel channel.

Breaking above this level is likely to accelerate the rally with a new ATH target on the horizon.

ALPHA / USDT 6-hour chart | Source: TradingView

Count waves

Trader @TheTradinghubb sketched the ALPHA chart, suggesting that the token is only just beginning the third wave and could soon accelerate its rise.

The source: Twitter

The most likely count indicates that the ALPHA is on the third wave (orange) of a bullish five-wave pulse. Wave three is usually the sharpest and the highest in intensity. The number of partial waves is shown in black.

Targets that are likely to act as the top of this wave range from $ 1.94 to $ 2.04 and $ 2.80 to $ 2.95.

The first zone coincides with the 0.618 fib retracement level (black) when measuring the total downward movement and gives the 1: 3 waves a ratio of 1: 1. The latter coincides with the all-time highs and results in 1: 3 waves with a ratio of 1: 1.61.

Daily ALPHA / USDT chart | Source: TradingView

Here you can see the ALPHA prices.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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