- ALGO coin has formed a descending triangle pattern on the daily charts
- The coin brokedown from a linear trend with a high Pearson’s coefficient
- No clear signs in terms of directional change for the coin, expect to be range bound
ALGO coin has formed a descending triangle on the daily charts. After a two-day rally in September, the coin consolidated in a range between $ 2.50 and $ 1.55. From mid-November to the current date the coin has formed a downward descending triangle on the charts. The coin is looking to test the resistance level of the descending triangle and has largely stayed within the triangle bounds. The coin broke the base support of the triangle and formed a new support level at the level of $ 1.30. The coin then moved back above the $ 1.55 level and is now trading in the triangle region. The triangle base and resistance levels are crucial for the coin in terms of determining its direction in the next few trading sessions.
ALGO coin on the hourly charts is on a down-trend for the last 15-16 hours, having said that the coin is seeing some green shoots during the last few trading hours. The coin was going on an upward trend steadily with a Pearson regression coefficient of 0.96 (closer to 1 the lesser are the deviations from the trendline, thus indicating trend strength) when there was a sell-off which caused the coin to fall to the support level of $ 1.25. The MACD indicator hints at bearishness with the signal line above the 12-26 day moving average difference line. The coin broke the lower band of the regression line and immediately saw a downward trend. After reaching the support the coin looks to continue in the range between $ 1.25 and 1.70.
Conclusion:
The coin is not showing any clear signs of buying or selling as it is quite distant from the supports and resistances. The coin has formed some key supports and resistances which could be used as flags by traders to place their trades.
Support: $ 1.25
Resiatnce: $ 1.70 and $ 2.50