TL:DR Breakdown
- Algorand price analysis suggests downwards movement to $1.3400
- The closest support level lies at $1.3800
- ALGO faces resistance at the $1.400 mark
The Algorand price analysis shows that while the bulls were able to recover to the $1.3900 mark, the price action has stagnated below the $1.400 mark as ALGO finds strong bearish resistance at the level.
The broader cryptocurrency market has observed a bullish market sentiment over the last 24-hours as most major cryptocurrencies observe positive price movements. Major players include ADA and ATOM recording a 10.24 and a 9.43 percent incline, respectively.
Algorand price analysis: ALGO faces resistance at $1.400
Across the technical indicators, the MACD is currently bullish as expressed by the green color of the histogram. The indicator shows weak bullish momentum at press time which has been increasing in recent hours as observed in the darker shade of the histogram. However, if ALGO is unable to observe a breakout at the $1.400 mark, the indicator would soon show bearish momentum as the selling pressure increases.
The EMAs are currently trading low around the mean position as the Algorand price analysis observes low net activity over the past few days. Furthermore, as ALGO has not observed significant volatility over the last three days, the EMAs are moving almost parallel to the x-axis suggesting low activity from both sides. While the 12-EMA is currently trading above the 26-EMA, a rejection at the $1.400 mark would result in a bearish convergence.
The RSI is currently neutral and trades below the mean level showing slight bearish dominance over the price action. The indicator hovers at 48.18 index units moving horizontally as ALGO struggles to cross the $1.40 resistance level. Furthermore, the neutral position of the indicator shows that ALGO has room for significant movement in either direction before it would need a trend correction.
The Bollinger Bands are currently narrow and show further convergence as the price action consolidates around the $1.4000 mark. The converging Bollinger Bands suggest a drop in price volatility across the 4-hour charts for the asset. At press time, the mean line provides support at the $1.3939 level while the lower limit provides support at the $1.3408 mark. On the other hand, the upper limit presents a resistance to the bulls at $1.4370.
Technical analysis for ALGO/USDT
Overall, the 4-hour Algorand price analysis issues a sell signal with nine of the 26 major technical indicators showing support to the bears across the timeframe. On the other hand, only seven of the indicators side with the bulls, suggesting a strong bullish pressure at the timeframe. Meanwhile, the remaining ten indicators sit on the fence and do not show support for either side of the market.
The 24-hour Algorand price analysis shares this sentiment and issues a sell signal with 16 indicators suggesting a downwards price action against only two of the indicators suggesting an upwards price movement for the asset across the mid-term charts. At the same time, eight indicators remain neutral issuing no signals at press time. The daily analysis shows the strong bearish dominance over the Algorand price across the mid-term charts.
What to expect from the Algorand price analysis?
The Algorand price analysis shows that after finding strong support at the $1.3400 level, the bulls were enabled to initiate a trend reversal and have recovered the $1.3900 mark at press time. The price action finds short-term resistance at $1.400 which might cause the bulls to stumble as strong bearish pressure weighs on the price action stagnating its movement.
Currently, traders should expect the Algorand price analysis to move downwards towards the $1.3800 mark as the bulls face rejection at the $1.400 mark. The increasing bearish momentum may cause further downwards movement to the $1.3400 mark where ALGO finds strong bullish support across the mid-term.
Source: https://www.cryptopolitan.com/algorand-price-analysis-2022-01-16/