- Balancer price is currently trading at $6.136 while witnessing a decrease of 9.94% in 24 trading volumes.
- BAL price trades below 20,50,100 and 200-day EMAs.
Balancer started its bearish after receiving rejection from $7.66 level on April 14. BAL price is currently stuck in a narrow consolidation zone near major support of $5.63 level. The bullish rally for balancer started at the beginning of 2023 which pushed price to $8 level. The impulse move was corrected by bears causing a downfall 32% and formation of $5.40 low. BAL price then tried to retest highs but were unable to do so due to strong bearish participation at $7.60 level.
The current market structure shows a higher possibility of disruption of recent formed support at $5.97. On the contrary, if bulls can defend support level and rise above $6.50 rejection, there is a clean move for BAL price to aim for $7.35 resistance. BAL price is trading below the 20,50,100 and 200-day EMA indicating strong bearish in the market. The immediate support level for Balancer resides at $5.60 which caused a bullish rally in the month of march.
Balancer Technical Analysis:
The RSI trades at 39.06 indicating bearish momentum in the market. The RSI curve almost touched the oversold area and started to rise. The bands of bollinger have expanded as price started to make bigger moves and increased volume hit the market indicating high volatility in upcoming days. Balancer price reached a lower band and has started to rise suggesting a possibility of pullback to 20-day SMA to push further down. The ADX is dipping and is currently at 14.35 indicating decline in bearish pressure and possibility of pullback. At this moment, there is no direction in price and the same level of pressure from both bulls and bears. The longs/shorts ratio is 1.07 with 51.73% longs and 48.27% shorts in the last 24 hours indicating increase in bullish strength for balancer price.
Conclusion:
The market structure and price action for balancer is indecisive as price is currently stuck in a narrow consolidation zone. During last week, Balancer price fell almost 18% and is still in bearish momentum which indicates a possibility of break of recent formed support at $5.97 to reach support level of $5.60. On condition that bulls can defend the $5.97 support level and bullish momentum rises in the market, then traders can target the $7.34 level.
Looking at year to date gains, the Balance price is still in positive territory. Balancer may not be the only automated market maker but provides unique features for the users that make it an interesting DeFI tool. The customizable nature of pools makes balancer attractive. Users can add more than one token and it is not compulsory that it should be ethereum. When DeFI traders will know more about the benefit, adoption might increase on the condition that it resonates with them, and Balancer might boom in the upcoming years.
Technical levels:
Major support: $5.60 and $5.97.
Major resistance: $7.34 and $7.57.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss