My Neighbor Alice (ALICE) Fails To Initiate Upward Movement Despite Bullish Pattern

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My Neighbor Alice (ALICE) is attempting to find support after breaking down from a short-term ascending support line.

ALICE has been falling since reaching an all-time high price of $28.66 on Nov 25. The downward movement led to a low of $5.38 on March 13. Measuring from the high, this amounted to a decrease of 81%.

While ALICE has been moving upwards since, it has yet to reach any significant resistance levels. The first such resistance is at $14.35. This is the 0.382 Fib retracement resistance level and a horizontal resistance area.

Double bottom pattern

A closer look at the daily movement for ALICE shows a double bottom, which is considered a bullish pattern. The double bottom transpired between Jan and March 24.

Besides being a bullish pattern, the double bottom was combined with bullish divergences in both the RSI and MACD (green lines). Such divergences usually precede bullish trend reversals.

While a reversal has occurred since the double bottom, the price has yet to even reach the highs between the two bottoms (red icon). 

After such a pattern, a more pronounced reversal would be customary, which would take ALICE at least to the aforementioned highs.

The two-hour chart shows that ALICE has already broken down from an ascending support line that had been in place since March 14. 

The closest support area is at $6.70. This is the 0.618 Fib retracement support level and is expected to halt the ongoing drop.

Wave count analysis

Cryptocurrency trader @Jacobemmerton tweeted a chart of ALICE, stating that the price has begun an upward movement that could take it to at least $40.

However, there are several possibilities as to the future wave count.

The movement from the all-time high to the Jan 24 low resembles a five-wave downward movement. 

Afterward, the March 14 low breaks the aforementioned Jan 24 lows (red line), invalidating the possibility that ALICE began a bullish reversal on Jan 24. 

Therefore, it is possible that the entire ongoing upward movement is corrective, and new lows will follow.

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here


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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto’s Senior Analyst.

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