Key Takeaways:
- Aleph Zero fans celebrated the token holding above a key support level.
- However, AZERO’s price has formed a bearish technical pattern.
- Aleph Zero is a privacy-centric blockchain platform.
NEW DELHI (CoinChapter.com) — Blockchain platform Aleph Zero (AZERO) prices have held above a support zone near $0.84 since its launch, which has made its fans hopeful of a bullish breakout.
A crypto investor with the X username Teddy highlighted AZERO price’s feat of maintaining above the key support zone. Teddy went on to proclaim that the token might soon have a “2-digit” price tag. At the time of writing, AZERO’s price was trading near $0.85.
The investor noted that more than 70% of the Aleph Zero token supply is locked, claiming that “serious” investors would not sell at current prices.
However, like a double-edged sword, AZERO price holding above a horizontal support level has resulted in the token forming a bearish technical pattern called the ‘Descending Triangle.’
A descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
Therefore, technical analysis rules set a theoretical price target near $0.19 for AZERO if it confirms the pattern, predicting a 77% drop in the coin’s prices.
AZERO Price Trying To Consolidate
Meanwhile, AZERO price’s recent rally helped the crypto token spike nearly 20% since Oct. 20 to reach a daily high near $0.865 on Oct. 30 before bears pared gains. Bulls are now trying to defend the 100-day EMA (the blue wave) trendline support.
AZERO price spiked a meager 2% on Oct. 31 to reach a daily high near $0.853 before bears forced the crypto token to pare gains. If bears manage to push the Aleph Zero token below the 100-day EMA trendline, bulls will be forced to defend the support near $0.8.
Moreover, a breakdown below the immediate resistance might see AZERO price drop to the support near $0.754 inside a historically strong support zone (the rectangle).
On the other hand, AZERO’s 20-day EMA (the red wave) and 50-day EMA (the purple wave) are likely to form a bullish technical pattern called the Golden Cross. Traders often consider the pattern an indication of positive market sentiment.
Hence, if buyers enter the market, AZERO price might rally to the resistance near $0.88. Moreover, breaking and consolidating above the immediate resistance might help the Aleph Zero token price target the 200-day EMA (the green wave) resistance near $0.92.
The RSI for AZERO remained neutral, with a score of 64.31 on the daily charts.
What is Aleph Zero?
Aleph Zero is a public blockchain platform that focuses on enhancing privacy. The blockchain uses a Proof-of-Stake (PoS) consensus mechanism.
Moreover, the developers claim that using a directed acyclic graph (DAG) as an intermediary structure in processing transactions helps Aleph Zero achieve transaction speeds similar to L2 blockchains.
Aleph Zero uses its own multichain privacy layer, called Liminal, to help developers deploy “scalable, low-cost, and privacy-enhanced products.”
However, the platform aims to provide its privacy framework within existing compliance regulations, hoping to keep the doors of institutional integration open.
