Scallop Price Eyes Bullish Breakout as Analyst Predicts Gains up to $1.31 Soon

• Scallop’s double-bottom formation signals a possible bullish reversal, with a critical neckline resistance at $0.48.
• Breaking above $0.536 may further strengthen the bullish trend, with targets set at $0.81, $1.10, and $1.31.
• Moving averages show upward momentum, and a potential golden cross could mark stronger market confidence for Scallop.

Crypto analyst CryptoBullet has pointed out a significant price movement for Scallop on the SUI network, where SCA holds a total value locked (TVL) of $180 million. The current breakout in Scallop’s price structure shows promising upward potential, with CryptoBullet pinpointing mid-term targets at $0.81, $1.10, and $1.31. 

Double-Bottom Pattern Points to Potential Reversal

Scallop’s price structure shows a double-bottom formation, suggesting a possible trend reversal after a sustained downtrend. This bullish “W” pattern, visible in a 3-day candlestick view, marks two price dips followed by rebounds.

The neckline for this formation sits at $0.48, a level where the asset faces resistance. At press time, Scallop was trading at $0.4787 and is  testing key resistance, which could transform into a support zone if crossed.

With the neckline as a potential breakout point, price targets for SCA include $0.81, $1.10, and $1.31. Notably, the $1.10 level acts as a psychological threshold, and any moves beyond could suggest robust buyer momentum. If $SCA achieves consistent closes above these levels, it may reflect stronger market confidence and interest from new buyers.

Moving Averages Reveal Strong Upward Momentum

Two essential moving averages, the 50-period (MA50) and 200-period (MA200), highlight the asset’s longer-term trends. Since mid-November, SCA has broken above both averages, signaling strength in its recent uptrend.

The MA50 in red initially crossed below the MA200 in July, marking a bearish phase known as a “death cross.” However, the price’s current position above both moving averages shows renewed bullish momentum, which could set the stage for a potential “golden cross” if the MA50 rises above the MA200.

These moves imply a solid upward trend, particularly if the price holds above current resistance levels, indicating a possible reversal from its previous lows.

Support and Resistance Guide Future Price Movement

The price faces resistance at $0.536, aligning with recent highs and the MA50 level. Breaking this barrier could sustain the bullish trend, pushing SCA towards its next targets. 

Key support zones include $0.382 and a lower base at $0.234, where prior lows formed a consolidation point. Should SCA face difficulty surpassing $0.536, it might pull back, providing traders with alternative entry points.