Algorand price might soon witness another bullish rally

Algorand, the blockchain for FutureFi, has rallied from the $0.67 lows in August to hit $2.5 in September. Since then, the price of the digital asset has suffered to be able to set a new high. Indeed, apart from one possible fat-finger trading day. However, ALGO has had an area of robust strong demand at the price level of $1.6. Following the price actions and the scenario, inventors are concerned whether the coming weeks will witness Algorand consolidate above demand once more, or it will break decisively.

Algorand price movements

On the charts of Algorands we have observed some clean higher time frame supply-demand flip. The trading zone marked the top for the coin in August 2020. Notably, ALGO past rocketed it in February 2021. Eventually the price of the coin retraced back to the same territory in mid 2021.

– Advertisement –

According to analysts, the $1.58 price level, where the 50% Fibonacci retracement level lies has coincided with some of the highs that Algorand established earlier last year. Notably, those highs were established before the September rally. The scenario marked the zone as a significant trading territory. Indeed, the $1.8 level will likely offer resistance on any move higher.

Notably, the price dropped beneath the trend zone last month. However, bulls were quick to push the coin back up. 

Bearish or bullish?

The RSO of Algorand was above neutral 50. However, the trend did not suggest that significant bullish momentum was behind the coin at the time of writing. HOwever, the upcoming days could see tha RSI retest neutral 50 and bounce higher. Ultimately, the scenario indicates an uptrend/bullish momentum.

At the most recent lows, another trading analysis tool showed bearish momentum was weakening. According to experts, Awesome Oscillator showed bearish momentum was white even as the price set new lows on the daily chart.

The divergence among the momentum and price was followed by ALGO soaring back to the $1.5 zone.

What should investors expect?

Analysts conclude that the $1.58 zone was a place where Algorand could consolidate in the coming trend. In contrast, the $1.32 support level was also something bulls would have to defend.

It is worth noting that the trading territory has served as demand for the past three months, similar in duration to the bounces which the coin saw off $0.7 from May to July before a rally in August. However, $1.58 still remains a key level where buyers and sentiment could drive a strong rally.