The Algorand (ALGO) price hovering above the $0.81 support indicates the sellers might have been exhausted from their previous bear attack. Furthermore, a bullish breakout from the immediate resistance of $1 would signal the first hint for a recovery phase.
Key technical points:
- The ALGO price indicates a 22% gain from last week
- The daily-MACD indicator lines provide bullish crossovers in the negative region.
- The intraday trading volume in the ALGO coin is $260 Million, indicating a 9.35% gain
Ascending Triangle Breakout Brings 25% Growth Opportunity
Source- Tradingview
The minor consolidation in price action revealed an ascending triangle pattern in the 4-hour time frame chart. The buyers could sustain the bullish breakout from the $1 neckline the coin price should pump to $1.25 in the upcoming.
However, a breakout from the $1.25 resistance would suggest a genuine trend reversal.
The significant drop in ADX value indicated the loss of bearish momentum during the recovery rally. If buyers complete the bullish chart pattern by sustaining above the $1 mark, the ADX slope would curve up, supporting the bullish momentum.
Source- Tradingview
During the first half of January, the ALGO bulls were strongly defending the $1.25 mark. However, due to the recent bloodbath in the crypto market, the buyers lost this crucial support and tumbled 35% to the $0.82 level.
Since last week, the coin price has been wobbling in a narrow range between the $1 and $0.82 mark. Today, the ALGO price finally attempts to breach the overhead resistance for a bullish reversal.
Moreover, the MACD indicator provides a bullish crossover of the signal and the MACD lines, projecting a buy signal for crypto traders. However, the down-slopping of crucial EMA levels(20, 50, and 100), indicates the coin is still under a bearish cloud.
- Resistance levels- $1, and $1.25
- Support levels-$0.81 and $.068
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/algorand-price-analysis-ascending-triangle-breakout-brings-25-growth-opportunity-in-algo-price/