ALGO came into existence to increase the transaction speed and improve efficiency and scalability that was below par in the times of Bitcoins and Ethereum, and it also brought a solution to the trilemma posed by Vitalik Buterin.
Algorand aims to become a greener alternative to other blockchains as it uses Proof-of-stake instead of Proof-of-work (Used by the largest cryptocurrency, Bitcoin). The blockchain aims to minimize lower transaction fees while servicing fast transaction speeds. Let us now look at the technical analysis of ALGO.
Past Performance of ALGO
During last week’s bull run, the Algo coin price started trading at $1.31 and gave a closing at $2.33 resulting in an 80% growth. However, the start of this week has been bearish with a 14.32% fall, at the time of writing.
Source – Tradingview
ALGO Technical Analysis
ALGO coin price is trading at $2.03 at the time of writing, with a fall of 5.79% in the past 24 hours. In the weekly chart, the ALGO coin price is trading in an uptrend but faces opposition from the growing resistance trendline. Thus, we can expect a fall in upcoming days back to the black support trendline or at $1.54, which can act as a solid support level.
Source – Tradingview
In the daily chart, the ALGO crypto coin price has been rising higher, eventually reaching $2.38. However, the price failed to sustain the bullish momentum and now struggles to break above the $2.38 level.
It seems that the price could test the $1.54 mark as the bullish breakout at the same level remains untested. Therefore, the retracement back to $1.54 can serve as a bullish entry point with low risk and tight stop-loss.
The exponential moving averages of 50, 100, and 200-days rise higher in a bullish alignment after the recent bullish crossovers. These averages can serve as demand points if the price retraces back.
Currently, the RSI indicator is sloping lower to the neutral territory after facing rejection from the overbought zone. It leads to a bearish divergence that supports the theory of a pullback to $1.54 or the support trendline.
On adding all the evidence provided by the price and indicators, we can shortly see a downfall to the $1.54 mark or even lower to the support trendline before finding the demand to rise above the 2.38 mark.
Day-Ahead and Tomorrow
Currently, the ALGO coin price seems to have a short-term downtrend in motion with the possibility of reaching the $1.54 mark. Investors looking to take a bullish entry to buy the dip may like to wait till it reaches the previously mentioned support levels.