Algorand (ALGO) increased significantly on May 3, but has yet to reclaim the $0.70 minor resistance area and the midpoint of its current pattern.
ALGO has been falling since reaching an all-time high price of $2.99 on Nov. 18, 2021.
Initially, the price bounced above the $0.75 horizontal support area in March 2022. However, after a brief bounce, ALGO broke down the next month. This was a crucial development since this area had been acting as support since May 2021.
Despite the breakdown, the price managed to bounce at a long-term ascending support line, which has been in place since April 2020.
Technical indicators in the weekly time frame provide mixed readings. While both the MACD and RSI are falling, the latter has generated bullish divergence (green line).
Due to these mixed signs, the trend cannot be considered bullish until ALGO manages to reclaim the $0.75 area.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.