- Algorand price shown a V-shape recovery and continued the upward momentum
- ALGO crypto price sustained above the 50 day EMA and formed a bullish hammer candle on the weekly time frame
- ALGO technical indicators are turning bullish and the volume bars supports the price pattern
Algorand crypto prices are trading with the bullish cues and bulls have succeeded to bounce back from the 50 day EMA support which shows the short term trend is reversed in the favor of buyers. Currently, The pair of ALGO/USDT is trading at $0.2504 with an intraday gains of 2.69% and the 24-hour volume to market cap ratio at 0.0704
ALGO price returning back to the bullish track ?
On a daily time frame, Algorand price had shown a V- shape recovery and continuing the upward momentum by forming a bullish engulfing pattern. From the past couple of weeks, ALGO prices are on a continuous rise and succeeded in reclaiming the 50 day EMA which indicates the confidence of bulls. However, the price is racing towards the supply zone and might face resistance on higher levels.
Algorand bear’s have tried to drag the prices below the 50 day EMA but bulls seem to be very aggressive and bounced back with the positive momentum. The 200 day EMA (green) sloping down indicates the positional trend is still in the bear’s grip and it will be difficult for bulls to break out of the supply zone at $0.2747. However if market sentiment remains positive then probability of the upside breakout will increase in the favor of bulls.
The technical indicators are turning bullish and RSI curve (80) has reached an overbought zone which may create trouble for bulls in coming days. According to price action if any minor sell off triggers from the supply zone then $1.604 will act as support levels for bulls. The MACD has generated a positive crossover and the curve is rising upwards indicates the strength of the bulls. Therefore it’s better to look for buying opportunities by keeping a strict SL.
Summary
ALGO prices seem to be in recovery mode and bulls are trying to keep the prices above the 50 day EMA which shows the confidence of buyers at lower levels. The technical analysis suggests that if market sentiment remains positive then bulls will easily break out of the supply zone and continue the upward momentum. Therefore, it better to look for buying on dips opportunities for the target of $0.3500 and above buy keeping $$0.1604 as SL
Technical levels
Resistance levels : $0.2747 and $0.4001
Support levels : $0.2000 and $0.1604
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/01/23/algorand-algo-price-prediction-algo-price-jumped-from-the-50-day-ema-and-formed-a-engulfing-pattern/