ALGO Technical Analysis: Will 50-day EMA Hold Bulls Down?

Key technical points:

Past Performance of ALGO

ALGO token price trades at $0.7269 with an overnight growth of more than 20%, resulting in a reversal from the support trendline of the falling channel. The bearish pattern accounts for a downfall of 40% after facing rejection at the psychological mark of $1.

Source-Tradingview

ALGO Technical Analysis 

The 300% jump in the ALGO trading volume supports the trend reversal reflecting a solid bullish commitment. Hence, the chances of the 50-day EMA breakout are increasing significantly. 

The crucial daily EMAs showcase a bearish alignment with the downtrend, gradually gaining momentum while providing dynamic resistance. However, the bullish reversal challenges the 50-day EMA teasing a bullish breakout that will potentially test the 100-day EMA. 

The RSI slope indicates an upwards trend in the nearly overbought area after a sharp reversal from the 30% boundary. In addition, it shows an upward trend affected by that 14-day SMA and displays the increasing bullish momentum.

The MACD and signal lines struggle to regain the bullish alignment with the positive crossover below zero. However, the increase in bullish spread and growth of positive histograms will confirm a buy signal.

In short, the ALGO technical analysis displays a bullish reversal with a falling channel.

Upcoming Trend 

ALGO coin price experiences a surge in buying pressure forecasting a bullish reversal with a potential to surpass the 50-day EMA. Hence, traders can expect a bullish wave above the psychological barrier of $1, providing the buying pressure sustains.

Resistance Levels: $0.81 and $1

Support Levels: $0.60 and $0.70