Posted 4 hours ago
A bullish reversal of the support trend line of the Megaphone pattern offers a rally opportunity for the Algorand coin price. In the favorable bullish scenario, a bullish cycle within this pattern should push the price to the upper resistance, which in our case is near $0.45. However, the buyers are currently showing only one step to reach this target with the break higher at $0.29.
- A bullish break from $0.29 sets up SOMETHING for 14.3% growth
- The descending EMAs (20, 50, 100 and 200) indicate that a potential rally may face multiple resistances
- The 24-hour trading volume on the Algorang coin is $400 million, indicating a gain of 118%.
The Algorand coin price has been sideways for the past five months, following a bullhorn pattern. Despite various macroeconomic events, such as the US Federal Reserve interest rate hike, the Russia-Ukraine war, and most recently the crash of crypto exchange FTX, ALGO remained within the range. pattern, indicating that traders strictly abide by this trading setup.
Furthermore, on Nov. 18, the Algorand price rallied from the lower support trend line, triggering a new bullish cycle within the pattern. This bullish reversal broke the local resistance at $0.29, offering further confirmation for the price recovery.
However, today the price shows a 2% intraday loss and retests the broken resistance. If buyers hold above the $0.29 mark, the potential rally should propel the altcoin 14.3% higher to reach $0.33, followed by the $0.37 barrier.
With that being said, the Algorand price will break out of the ongoing sideways trend once it breaks any of the trend lines of the bullhorn pattern.
RSI- A potential crossover of the slope of the daily RSI above the neutral line (50%) will indicate favorable market sentiment to follow the aforementioned bullish thesis.
EMA- the 20 day EMA is putting pressure on ALGO price to sink back down to the support low. Furthermore, the price will face similar resistance from the other EMAs (50, 100, and 200) as it continues to rise.
Algorand Intraday Price Levels
- Spot Price: $0.29
- Trend: bearish
- Volatility: Medium
- Resistance levels: $0.33 and $0.37
- Support levels: $0.29 and $0.255
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