BEL price follows a downward resistance line.
There are areas of resistance at $ 1.65 and $ 2.35.
Technical indicators are showing signs of bullish divergence
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The Bella Protocol (BEL) has steadily posted new highs to date since breaking below major support at $ 2.90.
Although price has shown signs of a reversal, it will need to break through current resistance to be able to reverse its trend.
BEL follows descending resistance
BEL’s price has been declining since September 15, after closing at its all-time high of $ 9.75. On September 22, the price fell below the $ 2.90 zone and validated it as resistance two days later.
The price then resumed its downward movement (a logarithmic graph is presented below to best illustrate the larger fluctuations in the price).
Since then, the price has followed a downward resistance line, which it has validated many times. It hit a low of $ 1.05 on October 5, and is currently trying to break through resistance.
The RSI has a significant bullish divergence, in addition to being out of oversold territory. Similarly, the stochastic oscillator formed a bullish cross.
If the price breaks its descending resistance line, the next resistance zones will be at $ 1.65 and $ 2.35
Cryptocurrency trader @ Mesawine1 shared a Bella Protocol chart, in which it was stated that the price would experience a further decline towards $ 0.80 before breaking above its descending channel:
Since October 3, the BEL price has probably started an upward impulse (in red below). In this case, it probably has a downward wave left, which would take the price down to between $ 0.80 and $ 0.89.
Additionally wave 4 (in dark gray) appears to be a correction rather than the start of a new upward movement. We therefore expect another decline.
In conclusion, although the BEL is likely to show another decline before starting an upward retracement, this process would speed up considerably if it managed to break above its current downward resistance line.