- The RSI shows a slight divergence concerning the coin’s price
- The ALGO/BTC pair was trading at 0.00004807 BTC with a gain of 3.35%
- The 24 hr trading volume in ALGO is $2.84 Billion
As mentioned in my previous article on Algorand, the token price was able to sustain above the $1.8 mark, displayed by a morning star pattern. However, the price again faced strong rejection from the $2.5 mark, validating the overhead level as legitimate resistance. Therefore, the ALGO traders can expect the continuation of its bull rally once the price breaks out from this level too.
The ALGO token’s market price is trading relatively high to the crucial EMAs 20, 50, 100, and 200, indicating a solid bullish trend.
The RSI value (BULLISH) is at 67, indicating a strong bullish sentiment for this coin. However, the RSI line shows a slight bearish divergence with the coin’s price action, indicating weakness in the bullish momentum.
ALGO Token May Enter Into A Consolidation Phase
The ALGO coin indicated the formation of a double bottom pattern in the 4hr time frame. This pattern was a piece of excellent news for the long traders, providing an excellent chance for the price to break out from the overhead resistance of $2.5. However, the intense selling pressure pushed the token price back to the lower price, suggest a reasonable possibility of creating a small range
Moreover, the ALGO traders can use the traditional pivot levels in their chart, providing extraordinary confluence with the SR levels. Thus, it offers a better confirmation and an extra edge in their trading.
The MACD indicator (BULLISH) shows both the MACD line and signal lines moving above the neutral zone (0.00), indicating bullish sentiment. However, the indicator also shows a bearish crossover of these lines, projecting a sell signal for coin traders.
Conclusion: From the technical perspective, the sentiment surrounding the ALGO coin is still bullish. And as mentioned earlier, the price offered a great long entry opportunity for its trader with the breakout of a rounding bottom pattern. However, with the current bearish outlook for the price, the long trader can consider the $1.8 as their crucial support for maintaining the bull rally.