Algorand price coiled and ready to spring to $1.25
- Algorand price continues to congest and build pressure.
- A major breakout to the upside is likely to begin very soon.
- Some warning signs of bearish price action are present.
Algorand price continues to constrict and consolidate, with the Saturday price action being the first in the past three days to show a hint of an imminent breakout higher.
Algorand price has two trade setups available on its Point and Figure chart
Algorand price action, while leaning towards the bullish side of a trend, also has a short opportunity in play. A trading opportunity for the long and short side of the market is currently present.
A hypothetical long entry for Algorand price is a buy stop order at $1.00, a stop loss at $0.92, and a profit target at $1.25. The trade represents a 3.13:1 reward for the risk. The entry would confirm a rare and powerful Point and Figure pattern known as the Ascending Quadruple Top Breakout.
ALGO/USDT $0.02/3-box Reversal Point and Figure Chart
A two to three-box trailing stop would help protect any profit made post entry. The long idea is invalidated if the short entry below is triggered first.
The theoretical short idea for Algorand price is a sell stop order at $0.88, a stop loss at $0.96, and a profit target at $0.68. The setup is a 3.33:1 reward for the risk. The entry at $0.88 is based on the breakout below a Triple Bottom pattern, with a profit target near the most recent major swing lows.
ALGO/USDT $0.02/3-box Reversal Point and Figure Chart
A two-box trailing stop would help mitigate against any whipsaws generated on a fast swing lower. The theoretical short setup is invalidated if the long idea is activated first.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
