Aergo's 181% Rally Hits Key Resistance Levels

Aergo, a cryptocurrency token, has experienced a significant rally, increasing by 181% from its low of $0.0475 on Saturday. This surge has positioned Aergo as a notable performer among smaller tokens, with a market cap of $64.44 million and only 7,300 holders. The rapid price increase, however, comes with caution, as smaller tokens with lower trading volumes can be more susceptible to price manipulation by large holders or whales.

The recent rally has pushed Aergo to key resistance levels from March and April 2024, specifically at $0.17 and $0.195. These levels marked the previous highs for the token and could potentially cap the current rally. The 1-day chart indicates a bullish surge, with the price closing above $0.08 on Sunday, which flipped the market structure bullishly. However, the 4-hour chart reveals a strong bearish divergence between the price and the Money Flow Index (MFI), suggesting potential resistance ahead.

Despite the bearish divergence, Aergo managed to pump by 60%, demonstrating the intense volume and volatility in the market. The liquidation heatmap from the past week shows that Aergo allowed liquidity to build up overhead while consolidating, before bursting higher beyond these pockets. This pattern ended below the $0.166 liquidity pocket, indicating that the $0.166-$0.17 resistance zone could be retested soon.

Given the current market conditions, traders and investors should exercise caution and avoid FOMO (Fear Of Missing Out) when considering Aergo. The token's recent rally has been impressive, but the potential for a bearish reversal as it retests key supply zones remains a significant risk. Buyers should be prepared for a possible retracement and consider taking profits at current levels rather than bidding more.