Despite being one of the only few cryptocurrencies capable of providing frictionless transactions between fiat and crypto by integrating a significant number of top blockchain businesses, cryptocurrency exchanges, and over-the-counter, Alchemy has struggled in the markets for months.
This month alone, Alchemy Pay prices have dropped by 27 per cent. In May, a similar aggressive bearish trend was also seen, which resulted in a 32 per cent drop. The same aggressive bearish trend was also seen in April when Alchemy’s price dropped by 37 per cent.
Is the Current Price Surge a Reversal?
However, the strong bearish trend has been waning in the past few trading sessions. Today, Alchemy is up by 6 per cent. The aggressive bullish move follows the last two consecutive bullish moves that resulted in a 10 per cent price rally.
Looking at the daily chart below, the last few days’ price action shows a likely price reversal to the upside. After prices hit a price bottom of $0.0107, Alchemy failed to break to the downside, despite numerous attempts. The area has become a strong support level, where prices have anchored and traded sideways for days.
Three days ago, after another attempt to break to the downside, the prices failed to break the support level. Instead, the prices bounced off the support level and set up the current aggressive bullish trend. With prices already up by over 20 per cent, the current push to the upside has looked increasingly likely to be a trend reversal.
Therefore, my Alchemy pay price analysis expects the current push to the upside to continue. As a result, there is a high likelihood that we will see the prices trade above the $0.015 psychological level again. Furthermore, if the prices will have enough momentum, then it is possible we will see Alchemy Pay trading above $0.02 in the near future.
However, if the prices reverse and trade below the $0.0107 support level, then my bullish analysis will be invalidated. A new bearish trend will also be confirmed.