Alpha Finance (ALPHA) is attempting to find short-term support after being rejected by a descending resistance line on April 2.
ALPHA has been falling since reaching an all-time high price of $2.96 on Feb 5. The downward movement led to a low of $0.248 on March 14.
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While it is possible that the price has been following a descending resistance line since the all-time high, the slope of the line is not confirmed due to the presence of several long upper wicks.
After the Feb low, ALPHA initiated an upward movement, validating the line for the fifth time.
While doing so, it reclaimed the $0.33 horizontal area in the process. The area is now expected to act as support.
If a breakout occurs, the next resistance area would be at $0.82.
Ongoing ALPHA bounce
The daily chart shows that ALPHA is also following a shorter-term descending resistance line which has been in place since Sept 5. It rejected the price for the fourth time (red icon) on April 2.
An interesting development is the upward movement that began on March 14. In a span of 19 days, ALPHA increased by 190%.
This upward movement was preceded by two bullish indicator readings.
First, the RSI broke out from a nearly yearlong trendline and is currently in the process of validating it as support.
Secondly, the MACD generated bullish divergence (green line), doing so for the first time in history.
Therefore, even though the price action is still bearish, technical indicators suggest that an ALPHA trend reversal is close or might have already occurred.
Wave count analysis
Cryptocurrency trader @Thetradinghubb tweeted a chart of ALPHA, stating that the price has completed wave A of an A-B-C corrective structure.
The movement since Sept 2021 looks like a completed A-B-C structure (black). Even though waves A:C do not have a corresponding ratio between them, there seems to be a completed five wave downward movement in C (red).
As for the resulting increase, the upward movement looks like a completed five-wave structure. In it, wave five was extended. Therefore, it is possible that it is the beginning of a new upward movement.
The ensuing decrease has already reached the 0.786 Fib retracement support level at $0.345. Therefore, it is not yet clear if it is only the A wave, or if it is a completed A-B-C correction.
In any case, another eventual high would be expected for ALPHA.
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