Algorand price to rally 25% as ALGO readies to break consolidation
- Algorand price has been stuck consolidating under a local resistance barrier at $1 for 11 days.
- A decisive close above this barrier is likely to trigger an ascent to $1.16.
- A breakdown of the weekly support level at $0.818 will invalidate the bullish thesis.
Algorand price has started coiling up below a stiff resistance barrier after the crash in January. As a result, ALGO has been tightly wound, suggesting a breakout to trigger a quick run-up soon.
Algorand price to make a move
Algorand price has tagged the $1 local resistance barrier thrice over the past 11 days, suggesting that it is a tough barrier to crack. Considering the overall bullish nature of the crypto markets, there is a good chance buyers might band together and trigger a move higher.
A four-hour candlestick close above $1 will signal a breakout. Investors can expect Algorand price to climb steadily up to $1.16, indicating a 24% ascent from the current position - $0.934.
There is a high probability that this uptrend is capped around the $1.16 level. However, if bulls manage to flip this hurdle into a foothold, Algorand price could extend the run-up and retest the 50-day Simple Moving Average at $1.317. This move would bring the total gain to 40%.
ALGO/USDT 4-hour chart
On the contrary, an increase in bearish momentum that pushes Algorand price to produce a four-hour candlestick close below $0.818 will create a lower low. This development will further skew the odds in the bears’ favor and invalidate the bullish thesis.
In this scenario, there is a chance ALGO could crash 18% and revisit the $0.675 support level and collect the sell-side liquidity resting below it.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
