On July 12, Ark (ARK) broke out from a descending resistance line that had been in place since March 30.
While it has failed to reclaim the $1.27 horizontal resistance area, it is in the process of making the second attempt at doing so.
ARK breaks out
ARK had been decreasing alongside a descending resistance line since March 30. This led to a low of $0.565 on June 22.
Afterwards, the token began an upward movement and managed to break out from the line on July 12. It created a high low on July 20, and has reached a high of $1.30 so far.
However, it was rejected afterwards and has failed to break out above the $1.27 resistance area until now.
While technical indicators are bullish, they are showing some signs of weakness. The MACD is losing momentum and the RSI
Until the token manages to break out above $1.27, the trend cannot be considered bullish. If a breakout occurs, the next resistance would be at $2.60.
The shorter-term six-hour chart shows that ARK is trading inside an ascending parallel channel. Such channels usually contain corrective movements.
The token has been rejected by the resistance line of the channel, and has created several long upper wicks. Furthermore, there are potential bearish divergences in both the RSI and MACD, though they are still unconfirmed.
The resistance line also coincides with the previously outlined $1.27 horizontal resistance area. Therefore, it is a crucial level which will likely determine the direction of the trend.
As it stands, a rejection from it and returned to the resistance line seems like to be the most likely possibility.
Cryptocurrency trader @CryptoNTez outlined an ARK/BTC chart shows a flashing buy signal.
The ARK/BTC chart does look more bullish than its USD counterpart. The token has just broken out from a descending resistance line and made its first attempt at moving above 3140 satoshis, which however was unsuccessful.
Nevertheless, there is strong support at 2700 satoshis, and a bounce at this level would create a higher low.
While the MACD is showing weakness, the RSI has just crossed above 50 and the Stochastic oscillator has made a bullish cross.
If a breakout occurs, the next resistance area would be at 3550 satoshis.
For BeInCrypto’s latest BTC (BTC) analysis, click here.
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