- ACH/USD surged 50% in a single trading day
- A falling wedge pattern supports the bullish move
- The risk of a false breakout remains
The cryptocurrency market was rocked by the FTX scandal as investors fled in response to yet another industry fraud. Despite numerous predictions of the sector’s collapse, the recent price action offers encouragement to traders and speculators.
Take Alchemy Pay (ACH) as an example. It was the top-performing crypto yesterday, climbing roughly 50% against the US dollar.
Alchemy Pay is a pioneer of payment gateway solutions designed to connect fiat currencies with crypto economies. In short, the project aims to build a bridge between the crypto and fiat worlds.
With a circulating supply of 4.9 billion tokens and a maximum supply of 10 billion, Alchemy Pay currently has a market capitalization near $60 million at present prices, and more than 180 million tokens are traded daily.
ACH/USD chart on TradingView
Falling wedge points to more upside, but false breakout risk persists
Until recently, ACH/USD traded with heavy pressure—mirroring the broader crypto market. However, the recent bounce in Bitcoin and other major cryptocurrencies lifted smaller-cap coins and drew fresh buying interest.
As a result, price action broke out of a falling wedge pattern. This formation typically signals a reversal; more often than not, the market reclaims a significant portion of the pattern’s range.
That said, a new low remains possible.
For that reason, any long position should use a stop-loss set at the wedge’s lowest point, while a take-profit target is sensible around roughly half the distance the market had previously fallen. In other words, a target near 0.035 would be appropriate.
The concern is that yesterday’s rebound could be another false breakout. A quick review of prior moves shows similar breakouts that failed when the market reversed and formed new lows.
In summary, if recent low levels hold, ACH/USD retains further upside potential.