The weekly chart of CELO/USDT shows the following:
Downtrend: The chart shows a strong downtrend, which starts from the highs reached earlier. At the moment, the price is in the rebound phase, but maintains a low trend slope, which indicates the prevalence of bearish sentiment.
Resistance and support:
Resistance: The downward trend line (sloping line) serves as the main resistance. The price has tested this line several times but failed to break through it, which confirms the strength of the downward trend.
Support: The area around 0.40-0.50 USDT (highlighted in green) is a key support area. The price has already bounced around this area several times, indicating possible buying interest at this level.
Ichimoku indicator:
The Ichimoku cloud shows a weak zone as the current price is below the cloud, confirming the bearish sentiment prevailing.
The cloud ahead is also colored red, indicating a continuation of the bearish trend.
Current situation:
The price is currently trying to stay above the 0.60 USDT level, but the pressure from the resistance in the form of a descending line suggests a possibility of a return to the support zone if the upward breakout does not take place.
Potential scenarios:
Bullish scenario: If the price can break through the downward trend resistance line and consolidate above the Ichimoku cloud, this could be a signal for the start of a trend reversal with a possible upward move.
Bearish scenario: If the price fails to hold and goes below current levels, a retest of the support zone in the region of 0.40-0.50 USDT is possible. A breakout of this area downwards may lead to a further decline in the price.
Conclusion:
CELO is currently at a key moment. The downtrend is currently dominant and the asset needs a breakout of resistance to confirm a reversal.
