ALGO Technical Analysis: Bullish Launchpad Ready To Skyrocket Algorand

The ALGO/USDT pair supported by $0.28 monthly support shows a range-bound rally over the past three months. The altcoin failed thrice to surpass the $0.37 resistance, which acts as a bullish limiter for potential recovery. However, amid the recent recovery rally, the buyers broke this level and showed an ongoing retest phase. So, should you expect a post-retest reversal?

Key Points:

Source - TradingView

ALGO Technical Analysis

The ALGO price action shows a bull cycle within the consolidation range between the $0.28 and $0.37 marks, breaking above the overhead resistance. The price jump accounts for a 36% appreciation in the Algorand token value and the 50 and 100-day EMA breakout.

However, the increased selling pressure at the psychological mark of $0.40 results in a higher price rejection leading to an evening star pattern. This results in a declining trend that retests the broken consolidation range and the 100-day EMA.

Nonetheless, the declining trend in the intraday trading volume during the retest and the lower price rejection at the supporting EMA projects a bullish turnaround possibility.

Upon a successful post-retest reversal, the ALGO prices will skyrocket to $0.50 if the buyers assert dominance at $0.42. Otherwise, a turnaround will test the $0.30 mark close to the 50-day EMA upon the 100-day EMA fallout.

Technical Indicators

The inclining daily-RSI slope approaches the overbought boundary with a sharp increase in the underlying bullish sentiments. Moreover, the MACD indicator shows the fast and slow lines display a significant bullish gap with the rising trend in the histograms. Therefore, the momentum indicators support the possibility of a post-retest reversal.

Resistance Levels - $0.42 and $0.49

Support Levels - $0.40 and $0.30