Analysis

Algorand Price Analysis: Can ALGO Buyers Reclaim the $1 Mark?

The Algorand (ALGO) price hovering above the $0.81 support indicates the sellers might have been exhausted from their previous bear attack. Furthermore, a bullish breakout from the immediate resistance of $1 would signal the first hint for a recovery phase. 

Key technical points: 

The ALGO price indicates a 22% gain from last week
The daily-MACD indicator lines provide bullish crossovers in the negative region. 
The intraday trading volume in the ALGO coin is $260 Million, indicating a 9.35% gain

Ascending Triangle Breakout Brings 25% Growth Opportunity

Source- Tradingview

The minor consolidation in price action revealed an ascending triangle pattern in the 4-hour time frame chart. The buyers could sustain the bullish breakout from the $1 neckline the coin price should pump to $1.25 in the upcoming. 

However, a breakout from the $1.25 resistance would suggest a genuine trend reversal. 

The significant drop in ADX value indicated the loss of bearish momentum during the recovery rally. If buyers complete the bullish chart pattern by sustaining above the $1 mark, the ADX slope would curve up, supporting the bullish momentum.

Source- Tradingview

During the first half of January, the ALGO bulls were strongly defending the $1.25 mark. However, due to the recent bloodbath in the crypto market, the buyers lost this crucial support and tumbled 35% to the $0.82 level. 

Since last week, the coin price has been wobbling in a narrow range between the $1 and $0.82 mark. Today, the ALGO price finally attempts to breach the overhead resistance for a bullish reversal. 

Moreover, the MACD indicator provides a bullish crossover of the signal and the MACD lines, projecting a buy signal for crypto traders.  However, the down-slopping of crucial EMA levels(20, 50, and 100), indicates the coin is still under a bearish cloud. 

Resistance levels- $1, and $1.25
Support levels-$0.81 and $.068

The post Algorand Price Analysis: Can ALGO Buyers Reclaim the $1 Mark? appeared first on CoinGape.

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