Algorand Price Prediction: Bulls aiming for a 25% spike

  • Algorand price is up 4% on the day and could potentially rally 25% towards $0.32.
  • A daily close above $0.2727 could be an entry signal for the bullish scenario.
  • A breach of the $0.207 swing low could invalidate the uptrend thesis.

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

Algorand price showing strength

Algorand price is displaying bullish technicals that could be the start of a much larger upswing. On February 2, the digital blockchain token rallied by 6% to a two-month high of $0.2683, retracing into a previous trendline that once acted as support. The bulls are trying to solidify the bullish narrative by producing a candlestick close above the barrier, currently standing at around $0.2630.

Algorand price is currently trading at $0.265. The 8-day exponential moving average (EMA) was also breached during the run-up, a positive gesture that the 40% uptrend accomplished throughout January may continue.

A Fibonacci projection tool surrounding the origin points of the 40% rally and then projected into the steepest pullback at $0.207 on January 18 shows a golden pocket 61.8% projection ratio at the $0.27 zone. Traders may want to wait for a reactionary response to ALGO's first encounter with the level, as the golden pocket FIB is known to provoke strong liquidations.

Nonetheless, bears looking to short the current price action may be jumping in front of a moving train. A daily closing candlestick above the $0.2727 zone could be an entry signal to target the one-to-one ratio from the Fibonacci projection tool at $0.32. The bullish scenario would result in a 25% increase from the current market value.

ALGO/USDT 1-day chart

Invalidation of the uptrend could arise from a breach of the deepest swing low at $0.207. A breach of this barrier could result in a deeper counter-trend move likely to target liquidity levels near $0.17. The Algorand price could drop by 35% if the bears were to succeed.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.