ALGO Technical Analysis: Will The ALGO Prices Reach To $0.42?

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. The Algorand coin plunged back to the bottom support of $0.28. Thus, the buyers managed to defend this level again.

Key Points:

Source-Tradingview

ALGO Technical Analysis

The steady bull cycle offers new sets of higher highs, gradually leading the price to a range resistance of $0.37. Additionally, the AlGO prices currently trade at $0.33 and show a 14% growth from the base support.

Moreover, the technical chart portrays the ongoing recovery as a rising channel pattern. Using this uptrend channel, the coin buyers could carry the ALGO price to higher levels; however, in theory, this rising channel is in a bearish continuation pattern.

As per technical analysis, this chart pattern accentuates the failure of buyers to surpass the prior swing high, which eventually leads to a support trendline breakdown and a significant correction rally.

The 20-and-50-day EMAs accentuate the ongoing sideways in ALGO price. Moreover, the 50-day EMA currently offers significant resistance to buyers.

If coin buyers want to escape this bearish reign, the price should surpass the resistance and $0.37 resistance.

However, if they failed, the Algorand price could eventually lose the support trendline and plummet to $0.281.

Technical Indicator

The RSI slope shows a spike above the halfway line and the 14-day SMA reflection boom in underlying bullishness. The fast and slow line shows several crossovers just below the neutral, indicating a neutral to the bearish sentiment among market participants.

Therefore, the momentum indicators reflect growth in buying pressure. As a result, the ALGO technical analysis offers a buying opportunity. 

Resistance levels- $0.36 and $0.42

Support levels-  $0.30 and $0.25