ALGO could gradually increase towards the closest resistance at $1.90 and potentially go higher.
Long-Term Range For ALGO
In the final week of Feb., ALGO returned to validate the $0.87 area as support. Previously, the same area had been acting as resistance.
Since then, the token has been moving upwards, though it has yet to reach its Feb. highs.
Despite this, the ongoing increase was preceded by hidden bullish divergence in the RSI. Also, both the MACD & Stochastic oscillator are moving upwards. Therefore, long-term indicators are bullish.
The closest resistance area is found at $1.90, coinciding with the Feb. highs.
The daily time-frames support the bullish outlook. After a breakout from a descending resistance line, the token is currently in the process of breaking out from the $1.25 resistance area.
A daily close above this level would confirm that the trend is bullish.
Nevertheless, technical indicators in the daily time-frame are already bullish.
The MACD has given a bullish reversal signal. The RSI has crossed above 50. The Stochastic oscillator made a bullish cross. Therefore, it is likely that the trend is bullish.
It is possible that ALGO has begun a bullish impulse on March 2020.
That being the case, the ongoing decrease was part of wave four, is now complete. While it could develop into a symmetrical triangle, the low would still be the existing one.
A potential target for the top of wave five is located between $2.45-$2.52. Additionally, the target is found using an external retracement on wave four and a Fib projection on wave five.
Cryptocurrency trader @Thebull_crypto outlined an ALGO/BTC chart, which shows a resistance flipped to support.
Also, he suggests that we could see an increase all the way to the Aug. 2020 highs at 6500 satoshis.
The movement shows a bounce at the 1800 satoshi support area.
Despite the ongoing bounce, technical indicators do not yet confirm the reversal. Therefore, we cannot yet confirm the bullish trend.
The closest resistance area is found at 3500 satoshis, while the Aug. 2020 highs are at 5500 satoshis.
At the current time, some consolidation between the 1800 support and 3500 satoshi resistance areas seems to be the most likely option.
To conclude, the trend for both ALGO/USD and ALGO/BTC seems to be bullish. The former is expected to increase towards $1.90 and potentially $2.50. The latter is expected to increase towards 3500 satoshis.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Credit: Source link