Algorand rises to 6-month highs, but traders should buy

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice

  • The big downtrend of the Algorand followed the formation of a range
  • Evidence of accumulation has been seen but patience will be key

Algorand has been in a downtrend since September 2021. However, there was a possibility that things were starting to take a turn in the opposite direction. Although there are signs of a possible breakout, bulls may want to be patient.

This is the AMBCrypto price prediction for Algorand [ALGO] 2022-23

ALGO’s recent rally from $0.3 started along with Bitcoin’s rally from $19K. The last few hours of trading have seen a pullback in Bitcoin and short-term bearish sentiment across the altcoin market.

Consolidation and accumulation within the scope of the Algorand

Source: ALGO / USDT on TradingView

In 2022, until May, the price was in a strong downtrend. From a high of $2.45 in September 2021, only Algorand has fallen to the bottom of the charts. Beginning in June, the price formed a range between $0.42 and $0.28, with the midpoint at $0.35.

This indicates that the coin may be in an accumulation phase. In support of this argument, the A/D indicator has been in an uptrend showing steady buying pressure. The index hit higher lows since June.

On the other hand, the CMF oscillates between the negative and positive zone in conjunction with the bull-bear skirmish. At the time of publication, the CMF was at zero indicating a lack of significant capital inflow into or out of the market.

Could ALGO break out of the tops of the range? The RSI was already in the overbought zone and is declining. With that said, both the momentum and market structure remained bullish on the daily time frame.

Volatility in May saw a bearish order block forming just above the tops of the range. It ranged from $0.41 to $0.49, and suggested that ALGO will have strong resistance all the way up to the $0.5 psychological level.

Weighted sentiment remains positive, but not by a large margin

Algorand rises to six-month high, can traders expect a breakout this time?

Source: feeling

Weighted sentiment saw a huge peak in mid-October. This happened when the price reached a low of $0.28 and saw a recovery to $0.327 in a single day.

In the weeks that followed, weighted sentiment was not quite as positive, although ALGO started to rise. Meanwhile, development activity has seen its ups and downs over the past few months, but it shows that a lot of work is being done.

Can speculators get comfortable near the tops of the range? ALGO could be forced to recoup a significant portion of its profits if buyers cannot maintain their momentum. The $0.42 range highs can be used for long-term profit taking. To the south, the $0.35-$0.37 region could see a positive reaction from ALGO.

Leave a Reply

Your email address will not be published. Required fields are marked *