• Celo was trading with a bullish bias around $0.754 as buyers focused on undoing last week’s losses.
• A bullish cup-and-handle chart pattern has been identified, setting CELO up for a bull run.
• Support areas have been identified at the $0.60 psychological level, $0.563 50-day SMA, and the major demand zone at $0.48, with a target of $1.08.
Celo has been trading with a bullish bias in the last week, with buyers focusing on undoing the losses that occurred over the past few days. This has resulted in the formation of a bullish cup-and-handle chart pattern, which is a typical indicator of a bullish trend. This suggests that the price of Celo is poised for a major rally, with the target price set at $1.08.
The technical analysis of the Celo price chart has revealed that the turndown that occurred between Monday and Tuesday last week offered late investors a chance to buy the altcoin at a discount. This was followed by a sharp decline of 41% towards the $0.45 support level. Bouncing off this level, the price embarked on a recovery that was sustained for more than two weeks before being rejected by the same barrier. This price action has led to the appearance of a bullish cup-and-handle chart pattern, setting CELO up for a bull run.
At the time of writing, the Celo price is trading above the $0.735 demand zone, embraced by the 200-day simple moving average (SMA). The next line of defense on CELO’s downside is the 100-day SMA currently at $0.587. Additional support areas can be found at the 50-day SMA at $0.563 and the major demand zone at $0.48. Market participants can expect these buyer congestion areas to provide the hindwinds required to push the price higher over the next few days.
The Moving Average Convergence Divergence (MACD) indicator is also moving upwards, with the MACD line above the signal line. This suggests that the bulls are gaining the upper hand, leading to the emergence of a short-term bullish trend. The Relative Strength Index (RSI) is currently situated at the 64 level, indicating that the market is neither overbought nor oversold.
All in all, the technical indicators suggest that the Celo price is primed for an upswing, with the target price set at $1.08. Investors should keep an eye out for any potential reversal signals or price corrections in the coming days, as these could signal a shift in market sentiment.