Algorand has a self-sustaining blockchain model that supports a variety of applications. It was developed in 2019 to reduce the transaction time as compared to older cryptocurrencies. It has lower transaction fees and does not require mining. Let us look at the technical analysis for ALGO.
On July 02, 2021, ALGO opened at $0.835. On June 6, 2021, ALGO closed at $0.905. Thus, in the past week, the ALGO price has increased by approximately 8.39%. In the last 24 hours, ALGO has traded between $0.85 – $0.93.
Day-Ahead and Tomorrow
At the time of writing, ALGO is trading at $0.88. The price has decreased from the day’s opening price of $0.90. Thus, indicating a bearish day ahead.
The MACD is currently below the zero range, since the crash of 19th May. However, we can witness a bullish crossover by the signal line over the MACD line, near the zero range. If the buying pressure overcomes the selling pressure, the lagging indicator may breakout above the zero range. If not, then the MACD and Signal lines would stay in the negative for some time.
Talking about the RSI indicator. It is at 48%. It is constantly facing rejection at the 51% mark, which is acting as a strong resistance level. However, it is making a bullish divergence. Thus, buying pressures are slowly mounting. We have to wait and watch if buying pressures become strong enough to bring about a fresh breakout.
In short, when we look at both oscillators, we can say that the price may continue to fall for the rest of the day. However, we cannot rule out the possibility of a trend reversal.
Currently, it is trading below the second Fibonacci pivot point of $0.88. If the bears remain strong till day end, then the price is likely to fall below the first, and second support levels of $0.82, and $0.75, respectively.
ALGO Technical Analysis
On the upside, if the price breaks the resistance level of $0.92, then we can expect a strong up movement in the price. It will highlight the next resistance level of $1.09.
Thereafter, we have to wait and watch if the price retests and breaks out of these levels. In that case, the price upswing is likely to continue tomorrow as well.