- ALEO cryptosaw bearish momentum and steady selling pressure.
- The price bounce to $2.4 could be followed by a downward move, as per the liquidation heatmap.
Aleo [ALEO] crypto was in a steady downtrend in the past month. The token has shed 64% in value within three weeks, a worrying sign.
It was even more worrying because Bitcoin [BTC] and the rest of the market have seen some gains in the past month.
The firm bearish conviction and lack of buying pressure meant that ALEO is set to march further southward.
Uninspired price action reinforces doubt
Source: ALEO/USDT on TradingView
The market structure on the 4-hour chart was firmly bearish. The recent lower high was at $2.85. ALEO would need to climb another 19% before it can breach this level and flip the market structure bullishly in this timeframe.
The steady selling pressure was reflected in the OBV with its downtrend. Even though the rest of the market saw some gains alongside BTC in the past month, ALEO could not manage any substantial increase.
The Awesome Oscillator resolutely stayed below the zero line to indicate downward momentum. Overall, though there was a minor bounce from $2.15, there wasn’t a sign of bullishness behind the token.
In the coming weeks, ALEO would need to break the $5.65 Fibonacci 78.6% retracement level to give an early signal that it might be gearing up for a sustained rally. As things stand, this scenario might not play out.
ALEO crypto is primed for a pullback
Source: Coinglass
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The $2.4 zone saw a cluster of liquidation levels build up around it in the past 48 hours. The recent price bounce from $2.15 swept this zone.
To the north, the next sizeable magnetic zone is at $2.93. Hence, it is likely that the downtrend continues and Aleo crypto will drop toward the $2.1 level and lower.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
