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ALGORAND TOKEN PRICE ANALYSIS: ALGO Token Price Has Been Trading Above The Short-Term Supply Zone After Breaking It, Will It Continue The Trend?

source-logo  thecoinrepublic.com 24 July 2022 17:30, UTC
  • ALGO token price has gone past every short-term supply zone and now it is hovering around the long-term supply zone.
  • ALGO token price is forming a falling wedge pattern on a daily time frame.
  • The pair of ALGO/BTC is trading at the price of 0.000015 with an increase of 0.57% in the past 24 trading hours.
Source: ALGO/USDT by tradingview

ALGO token price has turned super bullish as the overall cryptocurrency market is bullish. The token is currently hovering around the long-term turn demand zone turned supply zone of $0.40. As the token consolidates near the supply zone, there are possibilities of a fast movement in the upcoming days. The ALGO token price has yet to surpass the important 50 and 100 Moving Averages. If the token faces rejection of the current supply zone of $0.40, it can fall back and take support at the current supply zone turned demand zone. The token price was moving in a lower low and lower high formation but the recent bullishness in the cryptocurrency market has led to the ALGO token breaking the price structure. As a result, the token has started forming higher high and higher low formations on the daily time frame. At present, the ALGO token price is trading at the upper band of the Bollinger band indicator and if the bulls keep control, the token price can be seen breaching the upper band. Volumes have increased in the past trading days, which will result in volatility to increase. Therefore investors should remain cautious and not get trapped.

ALGO token price is showing indecisiveness on the weekly time frame

Source: ALGO/USDT by tradingview

Despite the change in price structure on the daily time frame, price action in the weekly chart suggests otherwise.

Average Directional Movement Index: ADX has been continuously dipping as the ALGO token price is still falling on a daily time frame.ADX curve slipped below the 15 zones as the token fell below the demand zone. On the weekly time frame, the token price is still forming lower low and lower high formation. The supply zone of $0.4756 on the weekly time frame is strong and for a change of price, or structure to happen the token needs to give a breakout of this supply zone.

Relative Strength Index: RSI curve is trading at the price level of 41.71. It is yet to cross the halfway mark of 50. Once the ALGO token price crosses the halfway mark of 50, there is the possibility that the token gives a breakout of the $0.4756 supply zone. Until then inventors should remain cautious and wait for a clear trend.

Technical parameters are showing bullish signs on the daily time frame as the token approaches the supply zone 

Source: ALGO/USDT by tradingview

Moving Average Convergence Divergence: MACD indicates a bullish trend on the daily time frame as it gives a positive crossover. As the token hovers around the supply zone, the blue line going away from the orange suggests the bullish trend becomes strong in the upcoming days. The token is now considered below the long-term demand zone turned supply zone of $0.40.

Supertrend: Recent bullishness in the overall cryptocurrency market has affected the ALGO token price as the super trend indicator triggered the buy signal. The ALGO token price crossed the super trend sell signal with a strong bullish green candlestick pattern. Since then the token has been on a rise. Going forward the super trend buys line can act as a strong demand zone.

CONCLUSION: ALGO token price has been hovering around the supply zone on a daily time frame. While on a weekly time frame the token price is still in a downtrend. It remains to see if the token breaks out of the falling wedge pattern or is it just a short-term bullishness before another bullish rally.

SUPPORT: $0.30 and $0.33

RESISTANCE: $0.40 and $0.4756

thecoinrepublic.com