Beam [BEAM] saw a 9.6% rally on Friday, 18 October. From the lows it posted on 10 October, the token, at press time, was up by a respectable figure of 28.1%.
Beam (BEAM) price saw a 9.6% rally on Friday as buying pressure returned to the market. From the lows it posted on 10 October, the token, at press time, was up by a respectable figure of 28.1%.
However, despite the gains, BEAM was still down by 94.3% from its all-time high. Moreover, several technical indicators suggested that a breakout from the consolidation was unlikely. Hence, investors were advised to buy at the support levels.
BEAM’s price has been trading within a range since mid-July. This range extended from $0.0115 to $0.0196, a 71% difference from bottom to top. This wide range provided swing traders with several ideal buy and sell opportunities in recent months.
The mid-range level at $0.0155 was also a significant level. Earlier this week, it was retested as support, and BEAM has bounced higher since then. The Awesome Oscillator formed a bullish crossover to indicate a shift in momentum.
However, the Accumulation/Distribution (A/D) indicator struggled to climb past a level that had been a support in August and September. This indicated that distribution was the stronger force, despite October’s gains.
Hence, swing traders must be prepared to sell BEAM near the range highs and can consider going short after a rejection from $0.0196.
Magnetic zone could pull BEAM a little higher
Coinglass data showed a sizeable concentration of liquidation levels at $0.0185-$0.0188, and another at $0.0138. At press time, BEAM was trading just under the former liquidity pocket.
Combined with the mid-range level serving as support, it is likely that the bulls manage to push the price slightly higher. The $0.0188-$0.0196 region’s retest can be expected to yield a bearish reversal.
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