Exclusive Algorand (ALGO) Maintains Long-Term Support Despite Sharp Fall

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In Brief
  • Algorand is trading in a range between $0.90 and $1.80.

  • ALGO is following a descending resistance line.

  • ALGO/BTC is trading in a range between 2,000 and 3,500 satoshis.

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The Algorand (ALGO) price has been decreasing over the past 12 days, but it has finally bounced at a long-term support area.

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Despite the upward movement, we cannot consider the trend bullish until Algorand breaks out above the current short-term descending resistance line.

 

Algorand Trading Range

ALGO has been decreasing since Feb. 12 after trading at a high of $1.86. The drop that followed has taken ALGO to a low of $0.79 on Feb. 23. 

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This served to validate the $0.90 area as support, a level which previously acted as a resistance. Conversely, the closest resistance area is found at $1.80.

Technical indicators in the weekly time-frame are bullish, indicating that the trend is also bullish.

ALGO Chart By TradingView

Future Movement

The daily chart shows that ALGO has bounced at the 0.618 Fib retracement level of the entire upward move. This level also coincides with the previously outlined $0.90 support area. 

Despite the bounce, technical indicators are firmly bearish. This is evidenced by the RSI cross below 50 and the bearish cross in the Stochastic oscillator.

ALGO Chart By TradingView

A closer look at the two-hour chart reveals a descending resistance line that ALGO has been following since the aforementioned high on Feb. 12. The line coincides with the 0.618 Fib retracement level and the minor $1.22 resistance area. 

Despite technical indicators being bullish, we cannot consider the short-term trend bullish until ALGO manages to break out above this line.

ALGO Chart By TradingView

ALGO/BTC

Cryptocurrency trader @CointraderNik outlined an ALGO/BTC chart, stating that if the current parabola support holds, ALGO would be expected to increase considerably.

Source: Twitter

However, the support area failed to hold and ALGO has broken down since the tweet. The drop has taken it to the 2,000 satoshi support area, where it has bounced slightly. 

Technical indicators still appear to be bearish. There has been a bearish cross in the Stochastic oscillator and the RSI has crossed below 50. 

Therefore, it’s possible that ALGO will consolidate in the range of 2,000-3,200 satoshis. The direction of the trend remains undecided.

ALGO Chart By TradingView

Conclusion

The long-term trend for ALGO is considered bullish as long as it’s trading above $0.90. However, the ambiguity in technical indicators and failure to break out above the short-term resistance line fail to confirm the direction of the short-term trend.

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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