- The ALGO coin price is hovering around the supply zone on a daily time frame.
- The ALGO coin price is trading inside a small range showing consolidation.
- The pair of ALGO/BTC is trading at the price level of 0.0000137 with a decrease of -2.25% in the past 24 hours.
The ALGO coin price is trading at the demand zone on a daily time frame, as per the price action. The coin price faced the strong bearish pressure that prevailed in the market during the past week which led to a fall in the price of the ALGO coin price.
ALGO coin price is strangles inside a range
As it began to decline from the supply zone, the price of the ALGO coin displayed a unilateral negative surge. On a daily time scale, the price of the ALGO coin is producing lower high and lower low shape. If the coin is able to successfully break out of the supply zone, the price of the coin will increase. The coin price is now trading beneath both the 50 and 100 Moving Averages. The coin price has broken out of the 50 and 100 Moving Averages as a result of the current bullish move.
As the coin price moves upward, these MAs provide significant resistance. After failing to surpass the top band, the coin price is currently trading near the centre of the Bollinger band indicator. The Bollinger Band indicator’s range has shrunk, signalling a strong move to the breakout side. As the coin price made a strong rebound from the demand zone, volumes rose. Due to recent large changes, volatility has increased, therefore investors should exercise caution.
The ALGO coin price is consolidating inside a small range
RSI curve is trading at the price of 49.74 as the coin bounces off the demand zone. At present, the RSI curve has crossed the 20 SMA. The coin is forming higher low and higher high formation on a 4-hour time frame as the coin shows bullishness in the higher time frame. The ALGO coin price can be seen moving if it sustains the recent gains and breaks the supply zone and if it does then the RSI curve can be seen moving even higher up supporting the trend, crossing the 50 halfway mark.
The ALGO coin price has failed to sustain the supply showing a very brief fall from the supply zone. Before the current consolidation coin showed a strong bearish rally which led to the token price falling to the super trend buy line. The super trend sell buy has been acting as a strong demand zone. The recent breakdown has not resulted in the super trend indicator triggering a sell signal. Although falling further will lead to bearish signals.
ADX has been continuously dipping as the coin price trades in a bearish trajectory on a weekly time frame. As of now, the coin price is trading at the important supply zone. The breakout of the supply zone can act as a strong demand zone in the coming days. At present, the coin price is trading in a small range on a 1-hour time frame, and if the same continues the coin price can be seen breaking on either side, triggering strong moves in the upcoming days. The ADX curve has dipped out of the 20 mark.
Conclusion: ALGO coin price is in an uptrend on a daily time frame. While on a smaller time frame the coin is consolidating in a small range. The technical parameters are also seen supporting the trend as they turn bullish. Investors should wait for a confirmation of proper bounce back and then act accordingly.
Support: $0.23 and $0.21
Resistance: $0.27 and $0.31
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/15/algo-coin-price-analysis-bulls-try-to-break-the-bears-grip/