NewsletterHere’s Why Algorand(ALGO) Price May Outperform Bitcoin In Near-Term Growth
A bullish reversal from the Megaphone pattern’s support trendline offers a recovery opportunity for Algorand coin price. Under the favorable bullish scenario, a bull cycle within this pattern should push the price to the overhead resistance, which in our case, resides near $0.45. However, the buyers currently show one single step to reach this target with the bullish breakout of $0.29.
Key points:
- A bullish breakout from $0.29 sets ALGO for 14.3% growth
- The downsloping EMAs(20, 50, 100, and 200) indicate a potential rally may face multiple resistance
- The 24-hour trading volume in the Algorang coin is $400 Million, indicating a 118% gain.
Source-Tradingview
The Algorand coin price has remained sideways for the past five months, following a megaphone pattern. Despite several macroeconomic events like the increasing interest rate hikes from US Fed, Russia Ukraine war, and most recently, the FTX crypto exchange crash, the ALGO remained inside the pattern indicating the traders strictly respect this trading setup.
Furthermore, on November 18th, the Algorand price rebounded from the bottom support trendline, triggering a new bull cycle within the pattern. This bullish reversal breached the $0.29 local resistance, offering an additional confirmation for price recovery.
However, today the price shows a 2% intraday loss and retests the breached resistance. If the buyers sustain above the $0.29 mark, the potential rally should drive the altcoin 14.3% higher to reach the $0.33, followed by the $0.37 barrier.
Having said that, the Algorand price will escape the ongoing sideways trend once it breaks either trendline of the megaphone pattern.
Technical indicators:
RSI- A potential crossover of the daily-RSI slope above the neutral line(50%) will indicate favorable market sentiment to follow the aforementioned bullish thesis.
EMAs- the 20-day EMA is pressuring the ALGO price to plunge back to bottom support. Moreover, the price will face similar resistance from the other EMAs(50, 100, and 200) as it continues to rise.
Algorand intraday price levels
- Spot price: $0.29
- Trend: bearish
- Volatility: Medium
- Resistance levels: $0.33 and $0.37
- Support levels: $0.29 and $0.255
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