ALGO Technical Analysis: Uptrend May Continue if it Breaks the Resistance Level of $1.99
Algorand was officially launched in 2019, and it was developed by MIT professor Silvio Micali. Its purpose was to increase the speed and efficiency of the transactions related to cryptocurrency. Let us look at the technical analysis of ALGO.
Past Performance of Algorand
ALGO started the week at $1.68 on 28 September 2021. Lower highs were seen as the price took support at the $1.54 level. The week ended at $1.93 on October 4, 2021.
ALGO Technical Analysis
ALGO is currently trading at $1.94, which is 3.26% down from yesterday’s close.
The price took support multiple times at the $1.54 level. On 29 September, the trend reversed itself. The uptrend may continue if it breaks the resistance level of $1.99. If it does continue, traders may take a long position after it breaks the above-mentioned resistance level as it will be likely for the ALGO price to continue its rally after a short correction in prices.
OBV was fairly constant with slight variations over the last week. This means the buying and selling pressures were balanced. Hence, we may wait to see in which direction the trend continues before making a call to take a short or long position.
RSI has been increasing over the last week and is currently at 58%. This can be a signal to take a long position but look at other indicators as well before making a call.
MACD is forming a negative divergence here with the price. This signals that there may be an impending peak. Since MACD is a lagging indicator, this divergence verifies the past week’s uptrend. This indicates a bullish trend ahead for the token.
Day-Ahead and Tomorrow
According to the FIB Retracement, higher highs and higher lows were seen in Algorand. The ALGO price bounced after taking support from the $1.54 level to reverse the trend. Traders can take a long position while keeping the target at $1.99 and placing a stop-loss at $1.67.
Hence, the indications are bullish but at the same time, we may wait for the price to either break through the resistance level or go below the support level to make a call.
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