KEY TAKEAWAYS

• The Skale Network (SKALE) price is up 60% today.

• SKALE bounced after falling to a new all-time low.

• What’s behind the Skale Network price increase?

The Skale Network (SKALE) price surged by 60% today, defying a correcting crypto market.

Interestingly, the Skale Network move is not driven by news, something expected for a pump of this scale.

“It Remains”, a transmedia franchise, announced a partnership with Skale Network on Aug. 12.

However, the pump happened two days afterward, rendering it unlikely that the announcement was the catalyst.

With that in mind, let’s analyze the charts and see if SKALE can sustain its bullish trend reversal.

Skale Network Bounce

The weekly time frame analysis shows that the Skale Network price fell to a new all-time low of $0.015 in June, breaking from the $0.020 horizontal support area.

However, the breakdown was not legitimate, since the SKALE price reversed almost immediately afterward.

A slight bounce followed, reclaiming the $0.020 horizontal support area.

Then, Skale Network went ballistic today, increasing by 60% and breaking out from a 16-month resistance trend line.

Even though there are three more days until the weekly close, it is almost a foregone conclusion that SKALE will confirm the breakout, since it only needs to close above $0.030 to do so.

Momentum indicators predicted the rally perfectly. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) created bullish divergences (orange) before the rally, legitimizing the breakout.

So, the long-term Skale Network price prediction is bullish, suggesting a rally toward $0.082 will follow.

Let’s look at the short-term chart to see if an initial dip is to be expected.

SKALE Correction Incoming?

The shorter-term six-hour chart puts the brakes on the extremely bullish weekly one.

This is because wave three may have ended while the Skale Network price has started a five-wave upward movement.

With a high of $0.050, wave three had 2.61 times the length of wave one.

This is a common target for an extension and can lead to a corrective wave four.

If that happens, SKL could fall toward $0.038 before eventually resuming its ascent.

On the other hand, another extension could take the Skale Network price to $0.060.

As it stands, this is less likely than a correction.

Dip Before Pump

SKALE’s breakout above a long-standing resistance could lead to more upside, possibly toward $0.082, but the rally might pause for a quick pullback.

A dip toward $0.038 wouldn’t be unusual before the next push higher.

The coming days will be key in determining whether the trend is bullish.