- Algorand price faces a wide area of resistance after surging nearly 16%.
- ALGO needs to clear the supply zone that extends from $1.50 to $1.63 to have any chance of surging higher.
- A 15% downtrend to $1.25 is likely if the buyers fail to shatter the said resistance level.
Algorand price faces a blockade that has rejected it multiple times over the past months. Now ALGO is trying to take another jab at this level.
Algorand price at a decisive moment
The 12-hour chart shows Algorand price stuck between $0.97 and $1.54 for almost three months. Although there were a few deviations from bulls trying to break out, they were hammered down.
At the time of writing, ALGO surged nearly 34% in under ten days and is steadily heading toward the supply zone that stretches from $1.50 to $1.63. A break out above this area will signal that the bullish momentum has overwhelmed the market sellers.
Under these conditions, Algorand price could rise 10% to retest the recent swing high at $1.79 or the pivot point on February 12 at $1.84.
If the bullish momentum persists beyond this point, ALGO could easily swing 23% to tag the 161.8% Fibonacci extension level at $2.21.
ALGO/USDT 12-hour chart
The bullish thesis mentioned above depends solely on the fact that buyers overwhelm the sellers and break through the supply zone. However, if the momentum falls short, sellers could trigger a 15% downtrend to $1.25.
A breakdown of this level would invalidate the optimistic scenario and kick-start another 15% downswing to $1.07.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin is showing rising correlation with the S&P 500
Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Consensys case against SEC over Ethereum dismissed by Texas court
Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.