Algorand (ALGO) has been trending upwards since March 14, but has not yet broken out of an important descending resistance line.
ALGO has been declining since reaching an all-time high of $2.99 on November 18th. So far, the downside movement has led to a low of $0.67 on March 14.
At least a support area at $1.73 has been served to validate that it has been in place since May 2021. Conversely, the main long-term horizontal zone is located at $1.73. Therefore, ALGO is currently trading at the lowest level in its long term range.
Technical indicators remain bearish, although they are showing early signs of a potential bullish reversal.
Bearishness comes from the fact that both the RSI and MACD are falling. The first is below 50 and the second is negative.
However, a potential Bullish Divergence is developing in the RSI (Green Line) and MACD may give a Bullish Reversal Signal (Green Icon). Yet, none of this has been confirmed.
Measuring from an all-time high, the price has dropped by 75%.
ALGO fails to exit
Similar to the weekly time frame, readings from the daily time frame are mixed.
The Bullish outlook is focused on the developed Bullish Divergence in both the RSI and MACD (Green Lines). More importantly, the trend lines of these divergences are still intact.
The bearish outlook is focused on the fact that both indicators are declining. Additionally, the RSI is below 50 and the MACD is negative.
short term movement
cryptocurrency trader @incomesharks Said that ALGO could bounce in the short term.
The six-hour chart shows a potential double bottom forming since March 14. In addition to being a bullish pattern, the double bottom has been combined with a bullish divergence in the RSI and MACD (Green Lines).
Besides, the RSI has broken below a bearish trend line.
Therefore, unlike the weekly and daily charts, the six-hour chart is decisively bullish.
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