ALGO Breaks Out And Heads Towards The Range High

Algorand (ALGO) Highlights

• The Algorand price broke out from a descending channel.
• It has moved above its 200-day moving average (MA).
• There is minor & major resistance at 3680 and 4000 satoshis, respectively.
• In the long-term, the ALGO price might have begun the third wave out of a five-wave Elliott Formation

Trader @CryptoNewton tweeted an ALGO price chart, stating that it is one of the most bullish looking charts since it has broken out above a resistance line and validated it as support afterward.

$ALGO one of the best looking charts now, breakout and now retesting, I'm buying this pic.twitter.com/hzC5VHH1y7

— 👑 Shelby 👑 (@CryptoNewton) February 19, 2020

Will the ALGO price continue to move upwards? If so, how high will it go? Continue reading below if you are interested in finding out.

Descending Channel

On February 2, the ALGO price broke out from a descending channel. It continued to increase until it reached a high of 3992 satoshis on February 12. During this movement, the price moved above its 200-day MA, only to fall back then move above it once more. While the price does not seem to be reacting to the MA, it can still provide resistance, so the price outlook is more bullish as long as it is staying above this MA. The short-term chart also looks bullish. The price has broken out from a descending channel/wedge as outlined in the tweet and has even moved above the ascending support line the price previously broke down from and possibly flipped it as support. It has currently reached the February 12 high near 3900 satoshis. In addition, it seems as if the ALGO price has completed both a five-wave Elliott formation and the ensuing A-B-C correction. Using a Fib retracement, we can see that the correction likely ended with the two long lower wicks on February 16/7, which occurred right at the 0.618 Fib level of the entire movement. Since this entire move has transpired after a breakout, the underlying trend is bullish and we can presume that the price will move upwards.

Future ALGO Price Movement

If the ALGO price breaks out above the February 12 high, the weekly chart can help us determine where it will head to next. We can see that the main resistance area is found at 4000 satoshis. In addition, the breakout from the descending channel mentioned in the first section looks like the beginning of the third wave of a longer-term five-wave Elliott formation. If so, this wave could reach a high near 6150 satoshis. A breakout above the resistance area at 4000 satoshis would confirm this possibility. To conclude, the ALGO price looks to be in the third wave of a long-term five-wave Elliott formation. The wave could reach a high of 6150 satoshis.