- Algorand price has been stuck consolidating under a local resistance barrier at $1 for 11 days.
- A decisive close above this barrier is likely to trigger an ascent to $1.16.
- A breakdown of the weekly support level at $0.818 will invalidate the bullish thesis.
Algorand price has started coiling up below a stiff resistance barrier after the crash in January. As a result, ALGO has been tightly wound, suggesting a breakout to trigger a quick run-up soon.
Algorand price to make a move
Algorand price has tagged the $1 local resistance barrier thrice over the past 11 days, suggesting that it is a tough barrier to crack. Considering the overall bullish nature of the crypto markets, there is a good chance buyers might band together and trigger a move higher.
A four-hour candlestick close above $1 will signal a breakout. Investors can expect Algorand price to climb steadily up to $1.16, indicating a 24% ascent from the current position - $0.934.
There is a high probability that this uptrend is capped around the $1.16 level. However, if bulls manage to flip this hurdle into a foothold, Algorand price could extend the run-up and retest the 50-day Simple Moving Average at $1.317. This move would bring the total gain to 40%.
ALGO/USDT 4-hour chart
On the contrary, an increase in bearish momentum that pushes Algorand price to produce a four-hour candlestick close below $0.818 will create a lower low. This development will further skew the odds in the bears’ favor and invalidate the bullish thesis.
In this scenario, there is a chance ALGO could crash 18% and revisit the $0.675 support level and collect the sell-side liquidity resting below it.
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
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.