Will ALGO Price Hit $0.5 Soon?

Algorand (ALGO) Current Market Status

Algorand (ALGO) has a circulating supply of 7,226,392,053 ALGO coins, while its maximum supply is 10,000,000,000 ALGO coins, according to CoinMarketCap. At the time of writing, ALGO is trading at $0.1693 representing 24 hours increase of 1.51%. The trading volume of ALGO in the past 24 hours is $33,507,148 which represents a 15.85% increase.

Some top cryptocurrency exchanges for trading ALGO are Coinbase, Binance, OKEx, Kraken, and Huobi. 

Now that you know ALGO and its current market status, we shall discuss the price analysis of  ALGO for 2023.

Algorand (ALGO) Price Analysis 2023

Algorand (ALGO) Price Analysis – Bollinger Bands

The Bollinger bands are a type of price envelope developed by John Bollinger. It gives a range with an upper and lower limit for the price to fluctuate. The Bollinger bands work on the principle of standard deviation and period (time). 

The upper band as shown in the chart is calculated by adding two times the standard deviation to the Simple Moving Average while the lower band is calculated by subtracting two times the standard deviation from the Simple Moving Average. When the bands widen, it shows there’s going to be more volatility and when they contract, there is less volatility. 

When Bollinger bands are used in a cryptocurrency chart, we could expect the price of the cryptocurrency to reside within the upper and lower bounds of the Bollinger bands 95% of the time. The above thesis is derived from an Empirical law. 

The sections highlighted by red rectangles in the chart above show how the bands expand and contract. When the bands widen, we could expect more volatility, and when the bands contract, it denotes less volatility. 

Currently, the Bollinger bands are moving downward while they are squeezing, hence, there could be less volatility, as the price moves downwards. Meanwhile, ALGO has touched the lower Bollinger band, as it is on the rise. It is closing in on the SMA. If it keeps rising, then ALGO could go above the SMA and fluctuate in the first half of the Bollinger. This presents an excellent opportunity for traders to enter the market. 

Nonetheless, since the Bollinger bands are squeezing we could expect ALGO to fluctuate quite close to the SMA. The preceding statement could be supported by the fact that ALGO showed this behavior when its bands were contracting.  

From another angle, ALGO has been making feint movements as if though it was going up, but with a little spike upwards it has come down. As such, buyers should make sure to place their stop loss with room for ALGO to make these feints. 

Algorand (ALGO) Price Analysis – Relative Strength Index

The Relative Strength Index is an indicator that is used to find out whether the price of a security is overvalued or undervalued. As per its name, RSI indicators help determine how the security is doing at present, relative to its previous price. 

Moreover, it has a signal line which is a Simple Moving Average (SMA) that acts as a yardstick or reference to the RSI line. Hence, whenever the RSI line is above the SMA it is considered bullish and if it’s below the SMA then it is bearish. 

When considering the first green rectangle from the left of the chart below we can see that the  RSI is above the signal. Hence, ALGO is bullish and as a result, it is making higher highs. 

The second green rectangle shows that the RSI line (purple) is below the Signal line (yellow). As such, Algorand is bearish or losing value. Therefore it is reaching lower lows as shown in the chart. 

Currently, the RSI of ALGO is at 40.08 and it is heading upward toward 50. More importantly, when considering the red highlighted circles, ALGO seems to be fluctuating taking the same pattern. If ALGO is actually reciprocating the highlighted pattern now, then we see a small drop in price before it starts going up again. This could present an excellent entry point for buyers. 

To properly adjudicate this scenario, it is better for the investors to wait for the market to make a move, before making any vital moves. It would be better if they wait for the RSI line to cross the signal to make sure that the trend is actually changing. Moreover, traders should consider using another indicator or a combination of indicators to make sure that this is just a retracement and not actually a trend reversal. 

Algorand (ALGO) Price Analysis – Moving Average

The Exponential Moving averages are quite similar to the simple moving averages (SMA). However, the SMA equally distributes down all values whereas the Exponential Moving Average gives more weightage to the current prices. Since SMA undermines the weightage of the present price, the EMA is used in price movements. 

The 200-day MA is considered to be the long-term moving average while the 50-day MA is considered the short-term moving average in trading. Based on how these two lines behave, the strength of the cryptocurrency or the trend can be determined on average. 

In particular, when the short-term moving average (50-day MA) approaches the long-term moving average (200-day MA) from below and crosses it, we call it a Golden Cross.

Contrastingly, when the short-term moving average crosses the long-term moving average from above then, a death cross occurs. 

Usually, when a Golden Cross occurs, the prices of the cryptocurrency will shoot up drastically, but when there’s a Death Cross, the prices will crash.

Whenever the price of cryptocurrency is above the 50-day or 200-day MA, or above both we may say that the token is bullish. Contrastingly, if the token is below the 50-day or 200-day, or below both, then we could call it bearish (Blue triangle section).  

At a glance, we could see that both moving averages are falling. This means that ALGO is under the bear trap. Although it tested the 50-day MA and broke out once in the last quarter of 2022, it could not retain the position that it gained. It just peeped above both averages for a brief moment and thereafter fell below both. 

It rose just once to test the 200-day MA, however, that too was not successful. Hence, ALGO is currently moving below both averages. There is a possibility that ALGO could test the 50-day MA. Hence, buyers may need to consider making an entry. However, there is also a possibility of ALGO feint moving towards the 50-day MA. So traders should do their due diligence.  

Algorand (ALGO) Price Analysis – Rate of Change

The Rate of Change Indicator is a momentum oscillator, that measures the change of the current price against the past price a few (n) periods ago, in percentage. As long as the price is rising ROC will be positive. But, the ROC indicator will reach the negative zone when the prices reduce. Increasing values in either direction, positive or negative, indicate increasing momentum, and moving back toward zero indicates diminishing momentum.

Unlike the RSI, ROC has no set overbought or oversold regions, it rather depends on a trader’s discretion. Traders often tend to find the areas in the positive and negative zones where the trend changes have happened in regularity. Based on this they could mark their bounds for overbought and oversold regions.

ROC could also be used as a divergence indicator that signals a possible upcoming trend change. Divergence occurs when the price of a stock or asset moves in one direction while its ROC moves in the opposite direction.

For example, if a stock’s price is rising over a period of time and registering higher highs while the ROC is progressively moving lower, or making lower highs, then the ROC is indicating bearish divergence from price, which signals a possible trend change to the downside. The chart shows an example of the above scenario. The same concept applies if the price is moving down and ROC is moving higher.

Additionally, the zero line crossover could be used to signal trend changes. However, depending on the number used for n (periods) in the indicator the signals may come in early or late.  

ALGO’s extremely overbought regions are marked as Overbought Region 1 at 12.61, and Overbought Region 2 at 75.24. Meanwhile, ALGO’s Oversold Regions are marked as Oversold Region 1 at -8.03 and Oversold Region 2 at -23.97.

Currently, the ROC indicates a value of 4.39 and the line is heading upwards. Hence, the very immediate overbought region which is at 7.23 may not be an obstruction to ALGO’s ROC. As such, we may not see a trend reversal at this point. The best that we could see is ALGO’s ROC ricocheting off of the 7.23 region and then keep increasing. If this happens it would present an excellent entry point for those going long. 

Algorand (ALGO) Price Prediction 2023-2030 Overview

Algorand (ALGO) Price Prediction 2023

When considering the behavior of ALGO, we could see that it is now trading inside a descending triangle. We could see that the sellers are more aggressive as Algorand is making lower highs while its buyers are next to hibernating. We could see just one higher low which is denoted by the green arrow in the middle. 

Since ALGO is increasing after touching the lower trend line of the descending triangle, we could expect it to keep on increasing until it touches the upper trend line. Furthermore, the Bollinger bands also approve of ALGO increasing. This is because, ALGO is retracing after touching the lower band, and it is close to the SMA, hence, it may increase further. Additionally, the volume of buyers also seems to be increasing, therefore, it may be that the trend is reversing. 

If ALGO breaks the descending triangle before completing it, we may see it reach Resistance 2 at $0.2826. However, Algorand would be met by some friction at Resistance 1 ($0.2413). 

In the event that the bulls are more powerful, we could expect ALGO to reach Resistance 3 at $0.3675. Although it may be alluring to see ALGO reach these limits, it’s better for buyers to hold their horses, rather than bet on these limits.  

As such, traders who are looking to go long may consider entering the market sooner than later. To be on the safe side, buyers may consider setting their take profit limit at the upper trend line while their stop loss could be set at the lower trend line. 

It will be too risky to aim for a take profit higher than the trend line as we never know whether the price will rebound off of the upper trend line. 

Meanwhile, for those looking to go short, it would be sensible for them to wait a little longer before entering the market, as the market is rising. Moreover, going against the market is not a wise thing to do, unless, one has evidence beyond reasonable doubt to do so. As such, the sellers may want to wait until they spot the formation of a red candle before entering the market. 

Even at the sight of a red candle, they should do their due diligence such use different indicators- different combinations of indicators before deciding.  However, in the event, they see the formation of a candle stick and favorable parameters, their stop loss should be the upper trend line while their take profit should be the lower trend line. 

Nonetheless, in the event that ALGO breaks the lower trend line, it may reach Support 2 at $0.1160. 

Algorand (ALGO) Price Prediction – Resistance and Support Levels

When looking at the chart above we could see some jagged movements of ALGO. Almost all crests of ALGO are pointed while its troughs are rounded. This means that when ALGO had drastic falls it takes time to recover from its fall. 

Moreover, when considering the intersection of the Fibonacci retracement and the Gann fan we could see that $1.8 seems to be a strong resistance for Algorand. Hence, we could say that, when ALGO crosses Resistance 3, it would reach $1.8. However, it would be far-fetched to say that ALGO could cross this Resistance in the near future since it has been struggling to reach Resistance since the beginning of 2023.

Algorand (ALGO) Price Prediction 2024 

There will be Bitcoin halving in 2024, and hence we should expect a positive trend in the market due to user sentiments and the quest by investors to accumulate more of the coin. Since the Bitcoin trend affects the direction of trade of other cryptocurrencies, we could expect ALGO to trade at a price not below $0.8533 by the end of 2024.

Algorand (ALGO) Price Prediction 2025

ALGO may still experience the after-effects of the Bitcoin halving and is expected to trade above its 2024 price. Many trade analysts speculate that BTC halving could create a huge impact on the crypto market. Moreover, similar to many altcoins, ALGO will continue to rise in 2025 forming new resistance levels. It is expected that ALGO would trade beyond the $2.9375 level.

Algorand (ALGO) Price Prediction 2026

It is expected that after a long period of bull run, the bears would come into power and start negatively impacting the cryptocurrencies. During this bearish sentiment, ALGO could tumble into its support regions. During this period of price correction, ALGO could lose momentum and be a little below its 2025 price. As such it could be trading at $1.837 by 2026. 

Algorand (ALGO) Price Prediction 2027

Naturally, traders expect a bullish market sentiment after the crypto industry was affected negatively by the bears’ claw. Moreover, the build-up to the next Bitcoin halving in 2028 could evoke excitement in traders. As such we could expect ALGO to trade at around $2.3391 by the end of 2027. 

Algorand (ALGO) Price Prediction 2028

As the crypto community’s hope will be re-ignited looking forward to Bitcoin halving like many altcoins, ALGO will continue to form new higher highs and is expected to move in an upward trajectory. Hence, ALGO would be trading at $3.183 after experiencing a massive surge by the end of 2028. 

Algorand (ALGO) Price Prediction 2029

2029 is expected to be another bull run due to the aftermath of the BTC halving. However, traders speculate that the crypto market would gradually become stable by this year. In tandem with the stable market sentiment and the slight price surge expected after the aftermath, ALGO could be trading at $4.0141 by the end of 2029.

Algorand (ALGO) Price Prediction 2030

After witnessing a bullish run in the market, ALGO and many altcoins would show signs of consolidation and might trade sideways and move downwards for some time while experiencing minor spikes. Therefore, by the end of 2030, ALGO could be trading at $2.7424

Algorand (ALGO) Price Prediction 2040

The long-term forecast for ALGO indicates that this altcoin could reach a new all-time high(ATH). This would be one of the key moments as HODLERS may expect to sell some of their tokens at the ATH point. 

If they start selling then ALGO could fall in value. It is expected that the average price of ALGO could reach $7.69 by 2040.

Algorand (ALGO) Price Prediction 2050

The community believes that there will be widespread adoption of cryptocurrencies, which could maintain gradual bullish gains. By the end of 2050, if the bullish momentum is maintained, ALGO could hit $11.70.

Conclusion

If investors continue to show interest in ALGO and add these tokens to their portfolio, then, it could continue to rise up. ALGO’s bullish price prediction shows that it could reach the $0.4 level. 

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Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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