ALGO Reaches New Yearly High

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In Brief
  • ALGO has broken out from a descending wedge.

  • There is resistance and support at $1.77 and $1.22.

  • ALGO has potentially completed a bullish impulse.

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Algorand (ALGO) has been moving upwards since breaking out from a descending wedge on Aug. 7. 

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It reached a new yearly high on Sept. 8 and is currently attempting to break out above the $1.78 horizontal resistance area.

ALGO reaches yearly high

On Aug. 7, ALGO broke out from a descending wedge and has been moving upwards since. The Sept. 8 fall only caused it to validate the Supertrend line as support (green) and created a long lower wick. 

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ALGO resumed its ascent with strength on Sept.8 and briefly moved above the $1.77 resistance area. This generated a new yearly high of $1.91.

Technical indicators in the daily time-frame are bullish. The MACD and RSI are both increasing. The former is positive while the latter has just moved above 70. 

Currently, ALGO is attempting to reach a close above the $1.77 horizontal resistance area. If it does, the two closest resistance levels would be at $2.15 and $2.55. These are the 1.27 and 1.61 external Fib retracement levels when measuring the most recent drop.

Chart By TradingView

Cryptocurrency trader @Pentosh1 stated that ALGO could go to new yearly highs since it is close to moving above the $1.40 horizontal area.

Source: Twitter

Future movement

The shorter-term six-hour chart shows that the movement has become parabolic over the last two days.

If the increase since June 22 is a bullish impulse, then it is possible that ALGO just finished wave five. The aforementioned yearly high was made at the 1:1 length of waves 1-3 (orange).

This is a suitable level for a top to be reached in. Furthermore, it coincides with a horizontal resistance area. 

If wave five extends further, the next Fib resistance would be at $2.4, coinciding with that given in the previous section.

Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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