Adventure Gold (AGLD) rebounded from a key support level during Saturday’s session, returning to traders’ radar after weeks of sideways trading. The move comes as some expect a potential trend reversal if a breakout occurs.
AGLD has regained its support level in the short term and is now attempting to break through a descending trendline resistance that has been holding back the coin’s upward movement over the past several months.
If the coin can close above the trendline resistance, it could be the first sign of a change in the coin’s movement since its overall bearish trend began.
Also Read: Adventure Gold (AGLD) Bullish Momentum Grows as Key Resistance Levels Approach in Uptrend
AGLD Faces Critical Resistance After Support Reclaim
As of press time, AGLD trades at the mid-$0.29 price level based on the data from CoinMarketCap. AGLD rebounded from the $0.255-$0.26 support area after the selling pressure pushed the price down from the $0.31-$0.32 area earlier this week.
As World Of Charts mentioned, a clean break above horizontal resistance and the descending trendline will represent a technical reversal. If this is seen with strong underlying volume and follow-through, upside projections are towards the $0.65 region and higher.
Again, it is important to note these are conditional statements and are dependent upon confirmation of these movements. Until then, AGLD is still technically limited as it continues to trade within its consolidation zone.
Momentum Indicators Hint at Short-Term Improvement
TradingView charts from Saturday, January 24, show AGLD trading sideways in a range, with no clear trend direction. While the price has managed to recover the $0.28-$0.29 area, this area has now formed resistance that needs to be flipped to support for the price to sustain the momentum.
Momentum indicators are showing some signs of improvement. The MACD indicator has indeed moved into a bullish mode with a positive histogram and a recent signal crossover.
Meanwhile, the RSI has moved from oversold territory into a neutral level in the 50s. Despite some improvement in indicators, analysts are suggesting that without a higher high and increasing volumes, any recent gains are unlikely to be sustained and are only a short-term relief.
Also Read: AGLD Breaks Key Resistance: Could 6,500% Gains Be Next?
