Algorand price bound for profit-taking at $1.10

• Algorand price triggered a previously identified long opportunity.
• ALGO has been one of the best performing altcoins and Defi cryptos of the past two weeks.
• Downside risks are limited.

Algorand price has performed very well this week, closing the weekly chart with a nearly 18% and reaching as much as 25%. As a result of this movement, Algorand triggered a trade setup on its Point and Figure chart.

Algorand price completes two consecutive bullish closes on the weekly chart; bulls need to maintain momentum to keep the trend moving up

Algorand price is likely to continue its drive higher, despite the selling pressure during the Friday trading session. On the weekly, 3-week, and monthly charts, Oscillators all continue to show extremely oversold conditions, with significant room remaining for ALGO to keep moving higher.

ALGO/USDT Daily Ichimoku Kinko Hyo Chart

The hypothetical long entry identified on March 17, 2022, was a =a buy stop order at $0.76, a stop loss at $0.68, and a profit target at $1.18. The trade represented a 5.25:1 reward for the risk, with a two to three-box trailing stop that would help protect any implied profit made post entry.

ALGO/USDT $0.02/3-box Reversal Point and Figure Chart

While the profit target is identified at $1.18 on the Point and Figure chart, originally, the analysis warned that Algorand price was likely to find resistance and selling pressure before the profit target would be hit due to the 2022 Volume Point Of Control, the weekly Tenkan-Sen, and the 61.8% Fibonacci retracement in the  $1.05 to $1.10 price range.

A corrective move south could occur because selling pressure occurred directly under the bear market trendline on the $0.02/3-box reversal Point and Figure chart. The move would likely encompass 50% of the current X column, roughly within the $.80 value area.

 

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