The Alpha Venture DAO (alpha) has been trending upward since June 15 which was preceded by a bullish divergence in the RSI.
Alpha has been trading lower below a descending resistance line since reaching an all-time high of $2.94 on February 5, 2021. The downside movement so far has reached the June 18 low of $0.093. As of now, line is in place for 525. Day.
While the RSI is at a new all-time low, it is not oversold yet. Furthermore, it has not generated any bullish divergence. As a result, there are no signs of a possible bullish divergence in place.
The main horizontal support and resistance levels are at $0.04 and $0.42 respectively.
alpha generates rapid divergence
The daily chart provides a more bullish outlook. This is mainly because the RSI has been creating a bullish divergence since May 14. If divergence is the catalyst for an upward move, the nearest resistance area will lie at $0.175.
The RSI is currently trading just below the 50 line, which is making its third breakout attempt. Since movement above this line is considered a bearish trend signal, an RSI breakout above 50 would be expected to precede the price breakout.
If alpha manages to clear the $0.175 resistance area, the next nearest resistance will lie at $0.395, formed by the 0.5 Fibonacci retracement resistance level.
Hence, there are chances of a significant upward move once the price manages to move above $0.175 due to the lack of overhead resistance.
wave count analysis
cryptocurrency trader @thetradinghubb Tweeted a chart from Alpha suggesting that the price is likely to rise to $0.15.
Since the tweet, the price broke out and appears to have started an upward move. However, it failed to maintain it and came back inside the previous ascending parallel channel. This indicates that the entire movement may be corrective.
As it stands, a shortfall crossing the June 30 low (red line) will be more likely before continuing with the uptrend.