- Algorand price is locked in an ascending channel.
- The 50-day SMA support is just below the channel, adding an extra layer of support.
- ALGO now needs a new catalyst to resume the uptrend.
Algorand price rally peaked on February 12, with the Relative Strength Index (RSI) hitting 90.92. This is the highest reading ever recorded since the introduction of ALGO in 2019. A 55% decline followed the historically overbought condition, taking ALGO down to the August 2019 high at $0.85.
Now, Algorand is hovering within a narrow trading range that will determine where it is heading next.
Algorand price overbought condition removed
Algorand price strength today is being supported by a volume thrust, and it is the first time since the consolidation began on February 24. It breaks the long downtrend in the volume profile, but the price strength has not pushed ALGO outside the channel formation.
Until ALGO can close above the upside trendline of the channel on a daily basis, the outlook stays neutral.
Moving past this barrier could send Algorand price to the next major resistance level around the recent all-time high of $1.86, followed by the 2.618 Fibonacci extension level of the August 2019 - March 2020 decline at $2.08.
Additional upside momentum will find resistance at the 1.382 and 1.618 extension levels of the February decline. These hurdles sit at $2.27 and $2,50, respectively.
ALGO/USD 1-day chart
It is worth noting that a daily close below the downside trendline of the channel and the 50-day SMA opens the door for a decline to the August 2019 high at $0.85. Further downward pressure around this crucial support level will likely be followed by a downswing to the $0.77 price level defined by the August 2020 high and the .618 Fibonacci retracement level of the collapse from August 2019 to March 2020.
The 100-day SMA comes in at $0.72, which is another price target to watch in case of a steep decline.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.