ALGO Technical Analysis: Uptrend Plans to Outgrow Falling Channel
Algorand has a sustainable non-centralized, blockchain-based network that can support a broad variety of applications. The systems are safe, scalable, and reliable, which are all essential characteristics for successful apps in real life. It can support calculations that require reliable performance assurance to establish new levels of trust.
Let us move ahead to read about the Algorand technical analysis.
Past Performance of ALGO
The ALGO coin price rose almost 40% in the past two weeks after finding support near the $1.30 mark. The breakout of the double bottom pattern near the $1.30 has driven the uptrend in the past couple of weeks. However, the uptrend seems to lose momentum due to the higher price rejection indications.
ALGO Technical Analysis
The ALGO coin price action forms a descending parallel channel in the daily chart. However, the price shows higher price rejection as it approaches the resistance of the falling channel pattern. Thus, a bearish reversal is possible shortly.
The RSI indicator at 55% shows the slope struggling to rise and sustain in the nearly overbought zone in the daily chart. However, the support of the 14-day SMA keeps the slope in an uptrend.
The MACD indicator shows the MACD (fast) and signal (slow) lines breaking above the zero mark in the daily chart. Moreover, the trend in the histograms shows the rally is here to stay.
Upcoming Trend
ALGO coin price shows higher price rejection near the resistance trendline of the falling channel. Therefore, the price action hints at a reversal within the pattern. Consequently, traders can shortly see a reversal in technical indicators if the prices fail to break above the pattern.
The support levels are at $1.45 and $1.30, which can halt the falling prices during the reversal. Moreover, the bullish breakout can find resistance at $2.38 and $2.8 horizontal levels.