After a prolonged bearish phase, the Aergo cryptocurrency has started to display early signs of structural change on the daily chart. While momentum has shifted, confirmation remains the key factor in determining whether this move can evolve into a valid bullish setup.

Aergo technical analysis

AERGOUSD - 1 Day Time Frame

Over an extended period, Aergo has traded within a clearly bearish market structure on the daily timeframe, defined by a consistent sequence of lower highs and lower lows. Such behavior typically indicates that bearish pressure continues to dominate price flow. Recently, however, the structure shifted in an impulsive manner toward bullish territory. This development is notable not merely because of the price move itself, but because it suggests a potential change in the underlying price delivery.

From a structural standpoint, the key observation is that the market has stopped forming clean bearish continuation patterns and has instead begun to display bullish external behavior. In practical terms, this reflects a transition away from distribution-style bearish delivery toward a phase in which bullish pressure is pushing price higher with greater momentum.

That said, despite this impulsive shift, the entry setup still requires a clearly defined confirmation trigger. In this case, confirmation is precise. The buy setup may become valid after a daily candle closes above the upper bearish daily candle that initiated the internal correction, marked on the attached chart by the upper orange line.

As long as price remains below this bearish candle, the structural shift remains unconfirmed, and the market could continue to trade in a corrective phase within the broader internal structure.

Aergo price target

If Aergo delivers a confirmed daily close above the referenced bearish candle, the buy scenario becomes active, as the market would have validated the change in price delivery through a clear structural reclaim.

Risk management then follows the same framework applied across similar setups, with a protective Stop Loss potentially placed below the relevant internal swing low within the newly forming bullish structure. From that point, natural targets remain the Buy-Side Liquidity levels, which often act as price attractors once bullish continuation is confirmed on the daily timeframe.

Conversely, if Aergo fails to achieve a daily close above the bearish candle, the setup remains incomplete. In such a scenario, the bullish shift cannot be treated as a confirmed structural change, and further consolidation or renewed downside remains a realistic outcome until the market produces the required daily close for validation.