Algorand tests key resistance before ALGO moves to $3.25
- Algorand price has moved up steadily over the past two weeks.
- Bullish continuation setups on the weekly chart indicate the prior uptrend's resumption.
- Near-term resistance is expected before ALGO can move higher.
Algorand price has performed remarkably well compared to the broader cryptocurrency market. From the $1.25 low during the week of December 24 to the current weekly high of $1.79, ALGO has moved 42% higher.
Algorand price faces strong resistance at $1.80; a temporary pullback is expected
Algorand price is currently approaching one of the most potent resistance levels on its weekly Ichimoku chart. The 2021 Volume Point Of Control and the weekly Kijun-Sen shared the $1.80 value area. Given the fast rise and lack of a short-term pullback, resistance at $1.80 is likely.
However, there is a chance that Algorand price may shoot above $1.80 without a pause. The Optex Bands and the Composite Index oscillators have come from new all-time lows. The Composite Index is also at a slope that suggests it will cross above both of its moving averages at the same time – an extremely bullish event. Additionally, the Relative Strength Index has bounced off the first oversold level in a bull market (50).
ALGO/USDT Weekly Ichimoku Chart
Because of the recent rallies off new all-time lows in the oscillators, there is potentially enough momentum to push Algorand price above the $1.80 without much effort. Conservative bulls may look close above the weekly Tenkan-Sen at $2.17 before entertaining any new long positions. A close at or above $2.17 would position Algorand price to begin its next leg higher towards 1005 Fibonacci expansion level near $3.25.
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.
