The price should break through resistance at USD 1.07 to confirm that the bulls have recovered control over the market. Although the recent buying pressure suggests the price has already bottomed out, it still must break through USD 1.02.
As the leading cryptocurrencies resume their bullish trends, the crypto market is still full of fear of missing out (FOMO) and optimism. The Algorand token ALGO is among those that have regained their short-term trend may be ready to achieve further gains.
ALGO is trading at around USD 0.93 and has accumulated a 13.10% gain over the last week. Its daily trading volume is above USD 228.08 million, and its market capitalization is about USD 6.17 billion. It occupies 30th place in the cryptocurrency ranking, according to CoinGecko.
Algorand is a network that supports many decentralized apps, known as dApps. Since December 2020, it has handled over one million transactions per day, showing a high level of adoption.
Technical Analysis of ALGO Indicates a Short-Term Bullish Trend
The ALGO/USDT daily chart shows that this token has had excellent behavior over the last few days. That allowed it to create a short-term bullish trend.
ALGO crosses the 8-day EMA and 18-day SMA to the upside, away from the current price.
Momentum is under development and may soon lead to a healthy and necessary pullback. The above moving averages may serve as dynamic supports when that happens.
The closest resistance is USD 0.98, below the next level at USD 1.07. The price should break through the latter to confirm that the intention of the bulls will bring further gains.
The trend will most likely continue to drive the price of the Algorand token higher. Before thinking of selling, there must first be increasingly low lows again in this time frame.
The Price of ALGO Could Resume the Medium-/Long-Term Trend
It is possible to see that the bulls are in command on smaller time frames. However, the weekly chart shows that the Algorand token still needs to make more gains to become bullish.
After achieving demand near USD 0.67, the buying pressure in the market of ALGO generated an excellent bullish candlestick. That could involve four weeks of bearish intent.
That happened after a significant correction caused the price to drop by almost 80% from the all-time high of USD 2.99.
The recent buying pressure seems to be announcing that the price has already reached the bottom of the decline.
However, the price of ALGO has not yet broken through resistance on the weekly chart to confirm that. The closest level it should cross is USD 1.02.
There has been a deep pullback, overall optimism in the market, and a predominantly bullish long-term direction. All those factors indicate this is an excellent time for investors to expect further gains from the ALGO token.
The above analysis aims to help better understand the performance of ALGO and make sensible decisions before buying. Although the cryptocurrency has regained the upward trend, its price must break through resistance at USD 1.07 to confirm the bulls are in command again.
By Alexander Salazar
