CELO Set for a Potential Breakout as Accumulation Phase Signals Bullish Trend, Analyst Predicts

• Celo’s 80% pullback is seen as part of an accumulation phase, with potential upward movement according to analyst.
• Resistance levels at $2.5 and $5.25 could challenge Celo’s recovery, with key Fibonacci levels marking potential reversal points.
• Short-term targets for Celo are set at $1.4, with ambitious macro targets of $6.6 and $14 depending on the market trend.

According to @CryptoBullet1, an analyst on X, Celo (CELO) has encountered a 80% pullback. However, the analyst remains confident, suggesting that the cryptocurrency is in a crucial accumulation phase, with the potential for future upward movement.

$CELO #CELO Macro update

Hit my Mid Term Target in March ✅
almost made it to my Mid Term Target 2 and got rejected 🔨
Tested prior Resistance line (now Support)

This -80% pullback changes nothing. It’s all just one big Accumulation

🎯 Targets remain pic.twitter.com/hWkhEwImxp

— CryptoBullet (@CryptoBullet1) August 11, 2024

Accumulation Phase and Resistance Levels

The weekly price chart for Celo/Tether reveals an ongoing accumulation phase, as identified by the analyst. During this period, the price has likely bottomed out, indicating that investors might be accumulating Celo at lower prices in anticipation of future gains. Notably, resistance levels have been highlighted at $2.5 and $5.25. These levels represent price points where Celo may face selling pressure as it attempts to move upward.

The chart also marks out the Fibonacci retracement levels, with a 0.618 level, which is often a key point. This level might be where price reversals occur, making it a critical area to watch for potential shifts in market sentiment.

Source: CryptoBullet on X

Short-Term and Mid-Term Targets

The analyst also mentions that Celo recently hit a mid-term target in March and approached a second mid-term target before being rejected. Despite this setback, the analyst maintains that the pullback changes nothing in the broader accumulation narrative. The short-term target is set at approximately $1.4, where the price is expected to encounter resistance.

Two macro targets have also been outlined, with the first target around $6.6 and the second at $14. These levels represent ambitious long-term goals, dependent on Celo following the projected price path outlined. The price channel, illustrated by diagonal lines on the chart, suggests that the market trend could reverse or initiate a new trend, with the current price appearing to have broken out of this channel.

Daily Analysis: RSI and MACD Indicators

The Relative Strength Index (RSI) is currently around 36.97, below the neutral 50 level but not yet in the oversold territory. This suggests that while Celo is in a lower range, it has not reached a critical oversold level.

Source: TradingView

The MACD indicator also reveals a bearish trend, with the MACD line below the signal line. However, the histogram indicates that the bearish momentum may be weakening, possibly signaling a shift towards bullish momentum. The diminishing strength of the bearish histogram suggests that the downtrend might be losing steam, offering a potential entry point.

Source