• 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 set CELO up for a 43% upswing to $1.08.
• Support levels include the $0.60 psychological level, the 100-day SMA at $0.587, the 50-day SMA at $0.563, and the major demand zone at $0.48.
The altcoin Celo has been trading with a bullish bias lately, with buyers focused on undoing the losses it suffered last week. After being rejected by the $0.766 resistance level, the price of Celo dropped as much as 41% to the $0.45 support level. However, this dip offered late investors a chance to acquire the altcoin at a discount and gave way to a recovery that has lasted for over two weeks.
This price action has resulted in the emergence of a bullish cup-and-handle chart pattern, which is often seen as a sign of an impending rally. At the time of writing, Celo is trading above the $0.735 demand zone, and is being embraced by the 200-day simple moving average (SMA). The next line of defense on CELO’s downside is the 100-day SMA, which is currently at $0.587. Additional support levels would emerge from the 50-day SMA at $0.563 and the major demand zone at $0.48.
The Moving Average Convergence Divergence (MACD) indicator is also moving up, indicating that buyers are in control of the market. This bullish setup implies that Celo could be in for a strong rally in the near term, with the altcoin potentially eyeing a 43% upswing to the $1.08 resistance level. However, if the selling pressure increases, then the altcoin could be pushed back below the $0.735 demand zone, which could invalidate the bullish setup.
Overall, the technical analysis of Celo indicates that the altcoin is primed for a rally in the coming days. With a strong support base and a bullish trend in place, investors should keep an eye on the altcoin as it could be in for a strong upswing.