ALGO coin price breaks above a solid resistance trend line. However, a weak follow-through increases the chances of a bearish fallout.
Algorand aims to speed up transactions and increase efficiency in response to slow transaction times for Bitcoin and other blockchains. Algorand’s design allows for lower transaction costs and no mining since it works upon a permissionless proof-of-stake protocol.
Let us now look at the detailed analysis of Algorand cryptocurrency.
Past Performance of Algorand
ALGO coin price took support at the $1.5 mark on 29th September. It has risen more than 20% since then. Furthermore, the price is above the short-coming resistance trend line and has the support of an ascending trend line.
ALGO Technical Analysis
ALGO cryptocurrency is currently at $1.88 as of writing. Additionally, the cryptocurrency has fallen by 3.85% in less than 24 hours. Thus, indicating a correction in coin price. Also, 11% of intraday trading volumes have fallen.
The 4-hour chart shows the coin price retraces to the short-term support trend line. This can lead to a quick bullish reversal as the underlying bullishness is still solid. However, the possibility of a bearish fallout is plausible.
As per price action, the ALGO Coin price might find support at $1.78 or $1.56. However, if the price reverses from the support trend line, then resistance close to $2 and $2.40 might push it down.
MACD and signal lines on the 4-hour chart move sideways slightly above the zero line. The lines are intermingled with no significant histogram formation. Hence, it gives a neutral signal.
The slope for the RSI indicator falls below the 4-hour chart’s central line. However, strong support resides between 42%-45%. Thus, it can reverse the bearishness. Till then, the RSI indicates a weak sell signal.
As per the Algorand technical analysis, the situation is critical for ALGO crypto. The price action is close to a support trend line with a slight increase in underlying bearishness. The chances of reversal and fallout are fluctuating. The reversal can be a good entry spot with minimum risk.
#Price #Crucial #Support