Analysis
The band protocol (BAND) tries to recover the important horizontal zone
Band Protocol (BAND) broke below a key horizontal support area but is currently attempting to regain it.
Critical Support Zone
BAND has been down since hitting an all-time high of $22.30 on April 15. The price initially bounced off the $4.35 horizontal support area (green icon) and tried to initiate an upward move.
However, the surge was short-lived and BAND broke below the support area (red icon) on Jan. 21. Previously, this zone had supported the price for 546 days.
BAND is currently in the process of confirming this area as resistance. Whether the price recaptures or rejects this zone will go a long way in determining the direction of future movement.
Weekly BAND/USDT Chart | Source: TradingView
BAND tries to break the resistance line
The daily chart shows that BAND is currently making a fourth attempt to break the descending resistance line that has been in place since November 2021.
Technical indicators are showing bullish signals supporting the possibility of a breakout.
The RSI, which is a momentum indicator, is currently moving above the 50 level. This is considered a bullish sign and usually occurs during uptrends.
More importantly, the MACD has created a very significant bullish divergence (green line). Such divergences often precede upward moves. In this case, it supports the possibility of a break above the descending resistance line.
In this case, the next resistances are at $5.93 and $6.82. The former is the 0.382 Fib retracement resistance while the latter is both the 0.5 Fib level and horizontal resistance area.
Source: TradingView
Count waves
Starting from the all-time high above, it’s possible that BAND has completed an ABC (white) correction structure.
Where wave A:C has a ratio of 1:0.382. This is the third most common ratio between the two waves.
The number of partial waves is black, showing that wave C is in the form of a finished crossover.
The proportions of the partial waves match perfectly, since partial wave five has the length of 0.618 of the other partial waves combined. This is very common in such structures.
Source: TradingView
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.
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Author: Annie
