ALGO Technical Analysis: Will Bull Run Continue After Consolidation at Current Levels?

The coin has been in an uptrend for the past several days.
The coin is expected to move to its next near resistance after the consolidation zone breakout.

The price of the coin is very close to its 50 EMA (the blue line). After a strong bull rise, the coin has entered a consolidation zone at the current price levels.

ALGO on daily time frame

There is a horizontal line visible on the daily chart. This horizontal line has recently served as a significant level of resistance for the coin. The coin resisted here earlier in the year 2020 as well, but when it finally broke through, it did so with a massive bull rally. Again the same can be anticipated. The price is expected to go to its next nearby resistance, which is $0.2970, following a breakout of the horizontal line and consolidation zone.

MACD- On the indicator MACD we cannot see any bullish crossover. This shows that there are an equal number of bulls and bears in the market at the current time. Moreover from this we can infer that MACD is neutral at present time and does not provide investors with any buy signal.

Relative Strength Indicator (RSI) – The RSI curve has a score of 61.97 which is over its 50-point mark. The value of the RSI curve can be seen rising further as soon as the price increases. Therefore at the current time RSI indicator is giving a buy signal to investors.

Analyst views and expectations

If the coin gives a breakout of the consolidation zone then we can expect a bull move. Short-term investors can consider investing in the coin as the coin can give them some great returns quickly. However, long-term investors should refrain from investing in the coin at this time because it does not appear to be a good long-term investment.

By February 5 this year, the price of Algorand is anticipated to increase by 4.82% and reach $0.249632, according to Coincodex’s most recent forecast. Its technical indicators indicate that the current sentiment is bearish.

The token is not a wise investment as per WalletInvestor’s long-term ALGO price estimate. According to its Algorand price projection, the price could reach $0.0425 by 2024.

According to Tradingbeast, the predicted maximum price of Algorand by the end of 2023 will be $0.3704010, while the expected price will be $0.2518727.

According to GOV capital, a platform that forecasts cryptocurrency prices, has a bold positive outlook for 2023, predicting that Algorand will have a perfect year by the end of the year and may even reach $1.04 mark. In the following five years, the price could rise as high as $5.314, according to their price estimate.

Technical Levels

Major resistance -$0.3883

Major support -$0.1643

Conclusion

The coin seems to be a promising short-term investment rather than long-term.

Disclaimer: The opinions represented in this work along with any other opinions are presented primarily for informative purposes and are not intended to be taken as investment advice.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing