Akash Network Price Bounces 50% in May – Resistance Breakout Could Lead to New AKT All-Time High
Can Akash Network Reach a New All-Time High? | Credit: Hameem Sarwar
Key Takeaways
- The AKT price has increased over 50% since the start of May and is only 20% below its yearly high.
- Unlike most of the cryptocurrency market, AKT bottomed on April 13 and created a higher low on May 1.
- Will AKT reach a new yearly high, and if it does, how long until it reaches a new all-time high price?
In contrast to the rest of the cryptocurrency market, AKT reached a new yearly high of $7.10 on April 23 before falling. In comparison, Ethereum and Bitcoin reached their yearly highs in March 12 and 14, respectively.
Despite the inability to sustain the increase, AKT still trades above its diagonal resistance, though it has yet to clear its main horizontal resistance. Can AKT finally move above it and reach a new all-time high, or will the price suffer another rejection instead?
AKT Bounces at Support – Breaks out From Resistance
The AKT price has increased alongside an ascending support trend line since November 19, 2023. It bounced above it on January 23, 2024, and reached a then yearly high on March 11.
AKT started to fall afterward, culminating with a low of $3 on April 13. This amounted to a decline of 54% since the yearly high.
However, the AKT price started a remarkable recovery afterward. After bouncing at a long-term ascending support trend line, AKT reached a new yearly high of $7.10 after 10 days, increasing by 133%. AKT was the best performer in the crypto market during this period.
The increase caused a breakout from a descending resistance trend line existing since March, a sign that the correction is complete.
Furthermore, besides saving a breakdown from the support trend line, the bounce (green icon) saved the $3.33 horizontal and Fibonacci retracement support level. Until now, the trend line has existed for 173 days.
The AKT all-time high is at $8.08, and analyzing the wave count is needed to determine if the price will reach it soon.
AKT Price Prediction – New Highs in May?
There are several wave counts that are still valid. The most bullish one is that AKT has completed wave four of a five-wave upward movement (white). Here, wave four took the shape of a symmetrical triangle, as outlined by the pattern and sub-wave count (black).
In this count, AKT has started the fifth and final wave of its increase. The daily RSI aligns with this possibility since it has increased above 50 and broken out from its bearish trend line (green).
The likely target area for the top of the movement is at $7.92 and $8.13, created by the 1.61 external Fibonacci retracement level of wave four and by giving wave five 0.618 times the length of waves one and three (white). Depending on where in this range the top is reached, this could constitute a new all-time high.
The irregularity with this count is that sub-wave B went significantly above the start of the triangle. However, since that movement was not sustained and left a wick in place, it can still be considered valid.
A potential bearish count implies that the AKT price is in wave B of an A-B-C corrective structure. In this scenario, the $3 area will reject the price, completing wave C near the $3 level. So, the reaction to the $6 area can determine which count will transpire.
Reaction to $6 Will Be Critical
Despite its remarkable recovery since April 13, there are still mixed signs regarding the future AKT price trend. The price action shows a breakout from a diagonal resistance, but the price still trades below a horizontal one. Also, there are two valid wave counts still in place. The reaction to the $6 resistance area can determine the path followed in May and beyond.
Crypto Market Cap Bounce Signals End of Correction – New All-Time High Imminent?
