- Algorand price is traversing a bullish pennant, hinting at an 85% upswing to $2.83.
- A decisive close above $1.53 will signal a breach of the pennant’s upper trend line.
- ALGO will kick-start a new downtrend if it slices through the 50% Fibonacci retracement level at $1.03.
Algorand price is trading inside a bullish consolidation pattern that forecasts massive gains.
Algorand price edges closer to breakout
Algorand price has been consolidating in a bullish pennant, composed of an initial burst in the market value followed by the formation of lower highs and higher lows connected using trend lines.
The continuation pattern projects an 85% advance to $2.83, determined by adding the flagpole’s height to the breakout point at $1.53.
ALGO is currently trading around the upper boundary at $1.48 and could break out now or head lower to produce another swing low. A drop to the 50 Simple Moving Average (SMA) on the daily chart coinciding with the 61.8% Fibonacci retracement level at $1.22 seems likely if the selling pressure spikes.
Either way, a secondary confirmation of the breakout will arrive after ALGO creates a higher high above $1.84. This move might signal to sidelined investors to jump on the ALGO bandwagon, pushing the price higher.
The 127.2% and 141.8% Fibonacci extension levels are the areas of interest before the buyers push the Algorand price to $2.84. Interestingly, the intended target coincides with the 161.8% Fibonacci extension level, a frequently visited level during the bull runs.
ALGO/USDT 1-day chart
A breakdown of the 50% Fibonacci retracement level at $1.03 will signal the bullish thesis’s invalidation and the start of a new downtrend. In such a case, investors can expect ALGO to drop 17% to the next support barrier at $0.84.
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.
Recommended Content
Editors’ Picks
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.