The Algorand (ALGO) price hovering above the $0.81 support indicates the sellers might have been exhausted from their previous bear attack. Furthermore, a bullish breakout from the immediate resistance of $1 would signal the first hint for a recovery phase.
Key technical points:
- The ALGO price indicates a 22% gain from last week
- The daily-MACD indicator lines provide bullish crossovers in the negative region.
- The intraday trading volume in the ALGO coin is $260 Million, indicating a 9.35% gain
Ascending Triangle Breakout Brings 25% Growth Opportunity
Source- Tradingview
The minor consolidation in price action revealed an ascending triangle pattern in the 4-hour time frame chart. The buyers could sustain the bullish breakout from the $1 neckline the coin price should pump to $1.25 in the upcoming.
However, a breakout from the $1.25 resistance would suggest a genuine trend reversal.
The significant drop in ADX value indicated the loss of bearish momentum during the recovery rally. If buyers complete the bullish chart pattern by sustaining above the $1 mark, the ADX slope would curve up, supporting the bullish momentum.
Source- Tradingview
During the first half of January, the ALGO bulls were strongly defending the $1.25 mark. However, due to the recent bloodbath in the crypto market, the buyers lost this crucial support and tumbled 35% to the $0.82 level.
Since last week, the coin price has been wobbling in a narrow range between the $1 and $0.82 mark. Today, the ALGO price finally attempts to breach the overhead resistance for a bullish reversal.
Moreover, the MACD indicator provides a bullish crossover of the signal and the MACD lines, projecting a buy signal for crypto traders. However, the down-slopping of crucial EMA levels(20, 50, and 100), indicates the coin is still under a bearish cloud.
- Resistance levels- $1, and $1.25
- Support levels-$0.81 and $.068
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