Yesterday Algorand continued its uptrend with renewed momentum. In its latest bid to the top, it surged as high as $0.40. This is a milestone as this is the first time since June the token is making a move to reclaim the level.
However, the spike in price comes with an unsustainable trajectory as many traders are taking profit, and ALGO is currently experiencing a massive correction. As a result, it is currently exchanging at $0.38.
That increase exceeded the ones outlined in the most recent outlook. After considering the possibilities of the downtrend, the article stated that we may see the token surge above $0.36.
This mark is a point of interest as it served as a strong resistance, preventing any uptrend above it. As with most tough levels, it may also double as a key support. One indication of this is the notable price standstill Algorand is experiencing there.
It is clear that one reason for the stability in price is equal pressure from both the bulls and bears. This may not last for long as the token is due to make more moves either to the top or further down.
Indicators like the Relative Strength Index were blaring warnings of the asset becoming overbought. Nonetheless, we observed that the metric maintained its upward trajectory in response to the present sentiment.
The Moving Average Convergence Divergence also maintained its bullish position. We observed that the 12-day EMA was also surging. As a result of the most recent increases, ALGO is sitting comfortably above its first pivot resistance.
However, this may change as the token is taking a dive. A closer look at the chart above shows the severity of the dip. The correction threatens to erase the accumulated gains. Like the previous intraday session, we also observed the price holding out at $0.38.
ALGO is no Longer Overbought
In response to the most recent state of the market, RSI is on a downtrend. A closer look at the metric shows the metric at 65. The pivot point standard is also blaring warnings as we observed that the asset is edging to a retest of the first pivot resistance.
Interestingly, the 12-day EMA seems unaffected by the most recent change in trajectory. We note that the indicator is still maintaining its upward momentum. There are several speculations about what may happen in the coming days.
Recognizing that one of the reasons for the massive increases during the previous intraday session is because of a new announcement, many are optimistic. FIFA yesterday announced that it entered a partnership with Algorand to offer NFTs.
With several events from the football association shaking the world, the cryptocurrency may also see this translate into better price performance. Nonetheless, there are indications of little downtrends along the way.
Key Levels to Watch
Key Support: $0.38, $0.34, $0.28
Key Resistance: $0.40, $0.42. $0.46
With further uptrends in view, we may see further advances at key levels. One such is the $0.40. From previous price movements, we observed that the highlighted resistance will serve as a great positive barrier to aid further attempts.
This is especially true considering previous price movements. We observed from yesterday’s price movement that once the $0.40 mark flipped, it immediately aided a retest of $0.41. A sustainable hike may also result in an attempt at $0.42.
The $0.46 may be one of the toughest to flip as the mark is also the third pivot resistance. Let’s see how prices may play out in the next few days.
On the flip side, ALGO is currently exchanging close to the first highlighted support which is $0.38. We observed the notable linger in price after the first rejection at $0.40 and boost from that mark to the most recent peak.
We may see a little drop below the mark, nonetheless, prices may still hover within that region. The next tough support if the previous one fails is the $0.34. Although the mark is new as it became a positive barrier some days back, a look at other performances shows a clear reason it is key support.
The last level to watch out for is the $0.28. It is the strongest support on the list and has served for the past 60 days.
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