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Algorand (ALGO) is experiencing a breakout rally, with buyers looking for a bullish continuation beyond the $0.1630 resistance. Could this lead to a new swing high at $0.25?
The Algorand price action shows a bullish comeback gaining momentum. Surpassing a long-coming resistance trend line, the V-shaped reversal in ALGO prices shows an impressive bull run in action.
Will this bullish recovery result in a breakout rally above $0.1630? Let’s find out.
Bull Run in Algorand hits $0.16
The bull run began with a Morning Star pattern near the psychological $0.10 level, propelling ALGO’s market value by 44% over the last 10 days. Currently, ALGO is trading at $0.1457, with an intraday gain of 8.37%.
The recovery run forms a bullish engulfing candle that completes the morning star pattern. The crucial pattern is formed near the support confluence of the 200-day EMA line and the 23.60% Fibonacci level at $0.1391. This pattern suggests strong underlying demand, fueling the ongoing rally.
At present, ALGO is facing resistance at the 38.20% Fibonacci level, which sits at $0.1630. This level has been significant in the past, as it led to a double-top reversal in July. However, with the recent bullish engulfing candle, the likelihood of a breakout is much higher.
In addition, ALGO is gaining momentum after breaking through the trendline resistance, signaling further upside potential.
EMA Crossovers and MACD Support Bullish Momentum
As the bullish trend gathers steam, the 50-day and 100-day EMA lines are nearing a bullish crossover. Furthermore, the price has ascended above the 200-day EMA, further strengthening the bullish outlook.
The MACD and signal lines are showing an increase in bullish momentum, confirmed by the resurgence of positive histograms. These technical indicators support the thesis that the bullish trend in Algorand is likely to continue.
Will Algorand Cross $0.20?
If the rally extends beyond the 38.20% Fibonacci level at $0.1630, it could trigger a significant bullish surge. The next key resistance to watch is the 61.80% Fibonacci level at $0.2106, which could mark the next major target in the rally.
Further upside could see ALGO reaching the $0.25 psychological level, aligning with the 78.60% Fibonacci retracement.
On the downside, the crucial support level to watch is $0.1391, which corresponds with the 23.60% Fibonacci level.