ALGO Price Analysis: Bulls Gearing Up For A Rally to New ATH

By Sunil Sharma
Published October 2, 2021 Updated October 2, 2021
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Source: Medium

ALGO Price Analysis: Bulls Gearing Up For A Rally to New ATH

By Sunil Sharma
Published October 2, 2021 Updated October 2, 2021

The Algorand proof-of-stake [PoS] blockchain platform recently launched its Algorand Virtual Machine, which quickly draws new money into the ecosystem. Let’s analyze the ALGOUSDT chart following a top-down approach, starting from the daily time frame, and wrapping it up on the 4HR time frame.

Algorand (ALGO) Daily Chart Analysis

A bullish campaign started on the daily time frame of the ALGOUSDT upon entering the RSI overbought area [level-75], indicated by the green label of the on-chart RSI indicator. The bulls continued to scale into their buy position as the RSI continued to hover above the level-25 and finally dipped below level-25 on 21 Sep ’21.

Although the RSI dip below the level-25 may send a bearish outlook towards the pair, the recent price close above bearish inside bar resistance and bullish divergence on 21 Sep ’21 hint that the bulls are still lurking around the corner.

An entry of the RSI above the level-75 would confirm a bullish comeback as the ALGOUSDT exchange rate break above the bearish divergence trend line.

Algorand (ALGO) 4HR Chart Analysis

Coming down to the 4HR time frame, ALGOUSDT plunged into a downtrend after a collapse of bullish inside bar support [2.3242] on 12 September ’21 at 16:00, setting new resistance on the bearish engulfing candlestick pattern [2.5574].

As old short sellers take profit off the table and join new bulls, the ALGOUSDT signaled its first regular bullish divergence on 21 Sep ’21 at 20:00.

  • Bullish/Bearish Scenario

We observe a buildup of demand for the ALGO token, following the recent announcement of the Algorand virtual machine on 29 September ’21.

  • A bullish divergence on 28 September 20:00 serves as a trigger confirming that the AVM news is a positive one for the PoS Altcoin.
  • In addition to the bullish divergence, the price breach of the bearish divergence trend line also shows massive demand brewing for the ALGO token.
  • Conversely, a price slump below the 1.5211 support is possible, a black swan event that could signal a takeover by bears across the crypto market.

Algorand (ALGO) Intraday Levels

  • Spot rate: 1.7445
  • Mid–Term Trend [H4]: Uptrend Starts
  • Volatility: Low
  • Support: $1.5211 and $1.5529
  • Resistance: $1.7707, $1.8570, and $2.3242
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil Sharma
234 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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