Here’s Why You Shouldn’t Trust This Algorand (ALGO) Price Rally

The Algorand (ALGO) price broke down from an ascending support line, indicating that the ongoing increase has come to an end.

The Algorand price has fallen below a descending resistance line since reaching an all-time high of $2.990 in November 2021. The lowest price reached was $0.16, and it was from there that ALGO began its current upward trend.

However, the Algorand price trades at an important confluence of resistance levels at $0.280. The long-term descending resistance line and the $0.280 resistance area create the resistance.

Therefore, the trend can be considered bullish once the price breaks out.

Bullish divergence in the weekly RSI preceded the entire increase (green line). The indicator may now break through 50, confirming the bullish trend.

If the ALGO price breaks out, it could move to the next resistance at $0.410. However, if a rejection follows, the price could fall back to the $0.170 support area.

ALGO/USDT Weekly Chart. Source: TradingView

Algorand (ALGO) Price Fails to Sustain Upward Movement

While the weekly chart provides an unclear reading, the technical analysis from the daily one indicates that the price is likely to decrease before resuming its upward movement. 

There are two main reasons for this: 

Firstly, the price broke down from an ascending support line and validated it as resistance afterward (red icon). Second, the decrease was preceded by a bearish divergence in the RSI (green line), whose trend line is still intact. 

Therefore, the most likely price forecast indicates that a downward movement toward the 0.5-0.618 Fib retracement support levels is likely. 

On the other hand, reclaiming the line would negate this bearish forecast. In that case, the ALGO price could increase toward the previously outlined long-term resistance at $0.410. 

ALGO/USDT Daily Chart. Source: TradingView

To conclude, the most likely Algorand price forecast for the rest of February is a downward movement toward the 0.5-0.618 Fib retracement support levels at $0.215-$0.231. On the other hand, reclaiming the short-term ascending support line would mean that the correction is complete and that the ALGO price can increase to $0.410.

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *