ALGO Technical Analysis: Buyers Plan A Channel Breakout

Key technical points:

Past Performance of ALGO

The ALGO prices trend within a falling channel pattern, accounting for a drop of 58% to a low of $0.30. However, buyers immediately overtook the trend control resulting in a price jump to $0.35, accounting for a 20% inflation last week. The bullish turnaround approaches the resistance trendline and increases the likelihood of a trendline breakout.

Source- Tradingview

ALGO Technical Analysis 

ALGO price action displays an upward trend anchored by the trendline that supports it, but the downward trend seen in intraday volume is a sign of possible a reverse of the trendline. Therefore, those hoping for a bull run should be patient for a breakout. The DMI indicator indicates a weak spot in the bearish trend that is currently in place because the distance between DI lines diminishes. Thus the trend reversal crossover could show a potential buying opportunity for safe traders.

The RSI indicator shows an upward trend, which reverses from the oversold boundary and gradually advances towards the halfway point. The 14-day SMA displays a trend higher than the 30% mark; however, the impact of bulls grows slowly. The MACD indicator shows the fast and slow lines that return to a positive direction from the zero line while remaining clear of the bearish cross. Furthermore, the bullish trend in the histogram's return shows an increase in buying pressure. In a nutshell, the ALGO price action forecasts a breakout rally surpassing the $0.40 mark.

Upcoming Trend

Considering the bullish trend breaks above the falling channel pattern, ALGO prices will soar to $0.50 with the support of increased trading volume.

Resistance Levels: $0.40 and $0.50

Support Levels: $0.3 and $0.25