Algorand Price Analysis: ALGO Could Lift 41% if This Crucial Technical Level Remains Intact
Daily Algorand ALGO Price Forecast
- Algorand comes out of consolidation and begins to chart a massive upswing path.
- Short-term technical levels hint at the uptrend remaining unchanged in the coming sessions.
- ALGO's uptrend is in jeopardy based on the four-hour RSI.
Algorand managed to come out of the dip witnessed in February, where support at $0.83 was tested. A period of consolidation dominated the digital asset throughout March. However, in April, bulls started to show signs of taking over.
Algorand Takes a Breather Before Resuming Uptrend
The daily chart shows the formation of an ascending triangle. This pattern is created by two trend lines, whereby one connects a series of ascending lows while the other links the relatively equal peaks. Usually, a breakout is expected from the pattern and occurs after the price slices through the x-axis.
Note that breakouts are precise and measured from the triangle's highest to lowest points. For example, Algorand has already soared above the key technical resistance, starting the journey toward the 41% upswing.
Meanwhile, some resistance has been encountered at $1.6, delaying the breakout. For now, bulls seem to be hunting for support, preferably at the x-axis. Confirming this support would be hugely bullish for ALGO and may jumpstart the rally to $2.
ALGO/USD Daily Chart
The same daily chart brings into light a bullish impulse as reinforced by the Moving Average Convergence Divergence (MACD) indicator. The MACD line (blue) sustains the signal line's position, validating the uptrend. If this technical picture remains unchanged, bulls will stay in control, building upon support at $1.4.
Looking at the Other Side of the Fence
The four-hour chart emphasizes the influence bulls have on the price. The Relative Strength Index (RSI) has been ejected from the overbought area and moving fast toward the midline.
ALGO/USD Four-Hour Chart
It is worth mentioning that the RSI's negative gradient is a bearish signal. Moreover, closing the day under $1.4 may sabotage the uptrend due to the market stability that may come into the picture.
Note that the 50 Simple Moving Average (SMA) is in line to prevent losses from significantly erasing the progress made from the beginning of April. If declines intensify, the 200 SMA will function as the primary support.