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
- Breaking: Polygon, Major Blockchains Hit With Network Attack
- New Crypto Rules In Europe: A Global Standard For Regulation?
- Third Biggest Whale Adds 1,416 Bitcoins In Last 2 Days; Will This Pump BTC?
- ‘Big Short’ Michael Burry Says Bitcoin Crash Is Only Halfway Through
- These Whales Scoop $850 mln Worth FTX Tokens Ahead Of BlockFi Deal
- Breaking: El Salvador Buys 80 Bitcoin (BTC), Here’s How Prices Reacted
- U.S. DoJ Slaps Charges Against Promoters of Baller Ape Club NFT In Rug Pull Scam
- Canada-based Ledn Challenges FTX’s Bid of BlockFi Acquisition With Better Proposal
- Just In: Basel Committee Proposes Cap For Banks’ Bitcoin Holding
- Dogecoin (DOGE), Shiba Inu (SHIB) Show Strength, Here’s Why
- Polygon Price Analysis: V-top Reversal may Direct MATIC to $0.31 Support
- ETH Price Analysis: Is Ethereum Dropping To Three Digits?
- Bitcoin Price Analysis- BTC on Losing Streak Nearing $17800; Will it Hold?
- NEAR Price Analysis: Falling Prices Eye $3 Breakdown; Should Coin Holders Worry?
- SHIB Price Analysis: Sustained Selling may Lead $SHIB to $0.0000074?
- Sandbox Price Analysis: Crashing SAND Prices Warns 25% Downfall
- Solana Price Analysis: $36 Breakdown Teases SOL Price to Revisit $26
- Chainlink Price Analysis: Wedge Pattern could Lead LINK price below to $5
- AAVE Price Analysis: Buyers Need $76.6 Breakout to Trigger Bullish Recovery
- Apecoin Price Analysis: Rising APE Price Knockout Another Barrier; is $6 Next?