CELO Technical Analysis: Bulls trap Soon To Test $2.9 support
Celo is a blockchain-based ecosystem that focuses on increasing cryptocurrency adoption by smartphone users. With phone numbers as keys for public use, the network hopes to introduce the millions of owners of smartphones, including those who do not have access to banking and cryptocurrencies, to transact.
The network also allows the development of smart contracts and DApps within decentralized financial (DeFi).
Let us move ahead to read about Icon technical analysis.
Past Performance of CELO
Under the influence of a descending trendline, the CELO price has tumbled 50% from the January high ($6). The buyers defended the $2.9 support with vigour, resulting in a minor consolidation phase, ranging from the mentioned support and $3.3. Amid the widespread recovery in the crypto market, the buyers escaped the narrow range with a 27% recovery from the bottom support.
CELO Technical Analysis
The CELO coin price resonated in this range for almost weeks and a bullish breakout from the overhead resistance of $3.3, suggesting an excellent long opportunity. However, the long higher price rejection candle on February 8th projected the intense supply pressure from the bears, resulting in a fakeout from the $3.3 mark.
The RSI indicator slope surged from the oversold zone and reclaimed the 14-SMA, indicating the sellers are losing their grip. However, below the neutral line(50), the RSI value maintains an overall bearish outlook.
The MACD indicator showed a bullish crossover between the signal and the MACD line during the recent price jump. However, these lines are struggling to maintain a steady rally, accentuating the weakness in bullish momentum.
The crucial Exponential moving averages maintain a bearish trend alignment. Moreover, the dynamic resistance 20 and 50 are majorly rejected by the bear trend pullbacks.
In a nutshell, the indicators showcase an overall bearish tendency. The buyers need to put more effort into bringing a sustainable change.
Upcoming Trend
On February 10th, the sellers pulled the CELO price below the $3.3 mark with a long bearish candle. The coin price could retest breakdown level to confirm the selling pressure, which would plunge the altcoin to its current lower low support of $2.9
If sellers slide coin price below the $2.9 mark, the downtrend is likely to continue with a selling opportunity until the $2.2 and $1.6. On the flip side, On the opposite end, the resistance levels are present at $3.3 and $3.78; however, the descending breakout is a must to confirm a bullish recovery.