Categories: Analysis

After the ATH level, Algorand (ALGO) tries to initiate another upward movement

Although Algorand (ALGO) has fallen since hitting a new all-time high, it is still holding out above the previous all-time high.

The recovery from this level is a very positive development that could lead to another rally. However, ALGO appears to be near the top of the bullish move.

New all-time high

ALGO has been moving up since it broke over a descending wedge on August 8th (green icon). The breakout indicates that the previous downtrend is over, a new uptrend has started.

The move higher led to a new all-time high of $ 2.55 on September 13th. Although the token has fallen since then, the price movement has not been bearish.

The main reason for this is the deviation below $ 1.77 (red circle) and their subsequent rebound. Such deviations are often followed by a clear movement in the other direction. Therefore, if ALGO can hold above this zone, it is expected to rise.

Technical indicators are in a neutral state, but tend to trend upwards.

The MACD line is bearish but still positive. The RSI is back at the 50 level. This is a sign that momentum is above average and usually preceded by upward moves.

Daily ALGO / USDT chart | Source: TradingView

Count waves

Trader @Altstreetbet sketched an ALGO chart indicating that the token will make one final rally towards a new all-time high before falling.

The source: Twitter

The number of waves indicates that ALGO is on the fifth wave of a bullish impulse. The bullish impulse is the trend created by three bullish and two corrective moves. Therefore, ALGO is in the last part of an uptrend.

In addition, all-time highs arise right at the confluence of fib retracement levels, which often act as tops as the wavelengths are often linked together.

The high is made with a 1: 1 length of waves 1-3 (white). This means that the length of shaft five is equal to the length pulled from the bottom of shaft 1 to the top of shaft 3. It also matches the 1.61 external fib retracement level of wave four (black).

If the upward move is extended, the next resistance will be at $ 3.50 at 1.61 lengths of waves 1-3.

Weekly ALGO / USDT Chart | Source: TradingView

You can see the ALGO prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x

Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.

18 mins ago

AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!

Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…

18 mins ago

Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations

Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…

3 hours ago

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

5 hours ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

8 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

9 hours ago

This website uses cookies.