The Aergo (AERGO) price has formed a higher low and is very close to a potential breakout. If successful, it could increase at least 100% from the current level.
The recent 2-3x increase in SXP and ICX prices over the past 7 days has created a Korean Narrative FOMO wave. A project seen as a rival to ICX, AERGO, could benefit from this wave.
Long-term trading range
The Aergo (AERGO) price has been trading within the range of $0.09 to $0.5 since February 2021. The price has tested both the resistance and support of the range multiple times until now.
After bouncing the support of the range in January 2023, this token has retested the long-term resistance zone at $0.17. Although rejected, it has created a higher low at the previous resistance zone of $0.11. This is a bullish sign, indicating strong buying pressure at a lower level.
Since then, the AERGO price has risen and is now approaching the long-term resistance zone once again.
The RSI indicator supports the possibility of a breakout by creating a bullish divergence before the entire upward move and staying above 50.
Therefore, the AERGO price could break out above the $0.17 resistance zone and rise to the middle of the range at $0.3, marking a 100% increase from the current level.
Volume and candles
The Volume indicator on the daily chart shows many large volume bars since November 2022. However, the candles created on days with large volume bars all have long wicks above (yellow circles), indicating abnormality as the large trading volume was not confirmed by the increasing range of the price.
This did not happen in yesterday’s trading session when the large trading volume was confirmed by a bullish engulfing candle (blue circle). It shows that the bull has taken control of the price action.
Therefore, it is highly likely that the AERGO price will break out above the $0.17 resistance zone in the coming days.
Conclusion
The most likely prospect shows that the AERGO price will break out above the $0.17 resistance zone and rise to the middle of the range at 0.3.
This view will be invalidated if the price breaks down below the support zone at $0.11.
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This article was republished from azcoinnews.com