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- ALGO reached a high of $1.37 initiated on the back of the 9.69% increase in the last 24 hours
- The price action has given a breakout from the cup and handles pattern
- 20 EMA has crossed above the 50 EMA indicating short term bullishness
ALGO/USD on the 12-hour chart has given a breakout from the cup and handle pattern, which was accompanied by a green candle smashing right through it. The price action is about to approach the ascending channel price pattern. The current price is only trading at a low of $2.23% from its 52 week high.
The uptrend was confirmed once we saw bullish engulfing at the support of $1.05. The fact that the breakdown from the ascending channel did not result in the trend moving upwards to retest the trendline indicated that the bearish scenario was only temporary. ALGO is only facing one barrier: the resistance level of $1.52 before it embarks on its journey towards smashing the latest yearly high of $1.86.
Source-tradingview
Bullish EMA crossover on the 4-hour chart
Source-Tradingview
Diving into the 4-hour chart, the price action had given a breakout from a symmetrical triangle pattern which was confirmed when the breakout candle was tested as support. The chart also dictates bullish divergence, which was discovered once the price action formed a higher low, whereas the RSI oscillator formed a lower high.
The price of ALGO is hovering above key EMA levels, which are providing strong support to the token. The 20 EMA(yellow) has just crossed the 50 EMA(red) and is on its path to cross both 100 (green) and 200 EMA (blue).
This particular move will cause a rise in momentum based on a very bullish strategy known as the golden cross.
At present, RSI is moving in the range of 65 and is extremely close to stepping in the overbought zone.
CONCLUSION:
The price action, along with the indicators, is in favor of ALGO. The CVIX with regard to the ALGO price stands at 50- which is a moderate value.
The price to target its latest high has to test the resistance level of $1.52, from where it has faced rejection quite a couple of times. However, an overbought RSI wouldn’t be the perfect time to enter. Speculators can wait for the golden crossover between the 20 and 200 EMA and then consider going long.
RESISTANCE : $1.52, $1.86
SUPPORT : $0.095, $1.05