Algorand Price Forecast: ALGO prepares for 25% rally towards $87

Algo price is coiling into a terminal diagonal triangle pattern.
The Relative Strength Index is displaying bullish divergence.
Traders should remain cautious as the consolidation may not be over.

Algorand price has been one of the more bearish cryptocurrencies this week as the price has printed the lowest low all month at $66. Despite the bearish grip, the 12-hour chart says the current downtrend could be coming to an abrupt end.

Algorand price is due for a move.

Algorand price is coiling into what appears to be a terminal diagonal pattern. According to the Elliott Wave theory, terminal diagonal patterns usually indicate trend weakness and forecast a future counter-trend rally. It is worth noting that terminal triangles usually have complex overlapping structures.

Algorand price has articulated erratic behavior since the end of January. The overlapping price structure on the 12-hour chart also coincides nicely with the Relative Strength Index, which has been printing divergent higher lows from the Algorand price. The Elliott Wave theory also permits analysts to use the diagonal origin point into the apex to calculate future price targets. Thus a 25% move into $87 move could occur sometime soon.

ALGORAND/USDT 12-Hr Chart

It is also worth noting that the Relative Strength Index does have 21% of unchartered territory by the current Algorand price. A 21% drop in price would bring Algo price back into the $54.00 zone. A drop into these lows would not invalidate this thesis, as C waves can be very complex in their own right.

A bearish impulse wave past 25% will be the first invalidation for the wedging terminal diagonal pattern. The diagonal pattern has either completed wave C and will march upwards to complete wave D at $87 for a 25% run. Or the entire diagonal is already complete, and a more significant uptrend is underway with targets past $87, perhaps even $100.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram