Algorand price set for explosive rally to $1.10

Algorand price action, like the majority of the cryptocurrency market, continues to recover after prolonged selling pressure. However, whether the current bounce is a real beginning to a new uptrend or simply a relief rally remains to be seen.

Algorand price begins a massive mean reversion higher to cover major Ichimoku gaps

Algorand price, on its weekly Ichimoku chart, has substantial gaps between the bodies of the weekly candlesticks and the Tenkan-Sen. Large gaps between the candlestick bodies and the Tenkan-Sen are not tolerated for very long, and they often correct within four to six periods, max. Therefore, ALGO is most definitely within that timeframe to begin a major move to return to equilibrium. The Point and Figure chart provides a clearer path and outlook for this scenario.

ALGO/USDT Weekly Ichimoku Kinko Hyo Chart

The hypothetical long entry for Algorand price is a buy stop order at $0.76, a stop loss at $0.68, and a profit target at $1.18. The trade represents a 5.25:1 reward for the risk. A two to three-box trailing stop would help protect any implied profit made post entry. While the profit target is identified at $1.18 on the Point and Figure chart, Algorand price is likely to find resistance and selling pressure before that profit target is hit. The $1.05 to $1.10 price range will probably act as primary resistance as it contains the 2022 Volume Point Of Control, the weekly Tenkan-Sen, and the 61.8% Fibonacci retracement.

ALGO/USDT $0.02/3-box Reversal Point and Figure Chart

The hypothetical long entry is invalidated if Algorand price return to $0.68 before the entry is triggered.