Algorand (ALGO) has been moving upwards since March 14 but has yet to break out from an important descending resistance line.
ALGO has been falling since reaching an all-time high price of $2.99 on Nov 18. So far, the downward movement has led to a low of $0.67 on March 14.
The low served to validate a support area at $1.73 that has been in place since May 2021. Conversely, the main long-term horizontal area is at $1.73. Therefore, ALGO is currently trading at the bottom of its long-term range.
SponsoredTechnical indicators are still bearish, though they are showing initial signs of a potential bullish reversal.
The bearishness comes from the fact that both the RSI and MACD are falling. The former is below 50 and the latter is negative.
However, there is a potential bullish divergence developing in the RSI (green line) and the MACD could give a bullish reversal signal (green icon). Still, neither of these has been confirmed.
Measuring from the all-time high, the price has fallen by 75%.
ALGO fails to break out
Similar to the weekly time frame, readings from the daily time frame are mixed.
The bullish outlook focuses on the bullish divergences that have developed in both the RSI and MACD (green lines). More importantly, the trendlines of these divergences are still intact.
The bearish outlook focuses on the fact that both indicators are decreasing. Additionally, the RSI is below 50 and the MACD is negative.
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Short-term movement
Cryptocurrency trader @Incomesharks stated that ALGO could bounce in the short term.
The six-hour chart shows a potential double bottom that has been forming since March 14. Besides being a bullish pattern, the double bottom has been combined with bullish divergences in the RSI and MACD (green lines).
Furthermore, the RSI has broken out from a bearish trendline.
Therefore, unlike the weekly and daily charts, the six-hour one is decisively bullish.
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