Although Algorand (ALGO) has fallen since hitting a new all-time high, it is still holding out above the previous all-time high.
The recovery from this level is a very positive development that could lead to another rally. However, ALGO appears to be near the top of the bullish move.
New all-time high
ALGO has been moving up since it broke over a descending wedge on August 8th (green icon). The breakout indicates that the previous downtrend is over, a new uptrend has started.
The move higher led to a new all-time high of $ 2.55 on September 13th. Although the token has fallen since then, the price movement has not been bearish.
The main reason for this is the deviation below $ 1.77 (red circle) and their subsequent rebound. Such deviations are often followed by a clear movement in the other direction. Therefore, if ALGO can hold above this zone, it is expected to rise.
Technical indicators are in a neutral state, but tend to trend upwards.
The MACD line is bearish but still positive. The RSI is back at the 50 level. This is a sign that momentum is above average and usually preceded by upward moves.
Daily ALGO / USDT chart | Source: TradingView
Trader @Altstreetbet sketched an ALGO chart indicating that the token will make one final rally towards a new all-time high before falling.
The source: Twitter
The number of waves indicates that ALGO is on the fifth wave of a bullish impulse. The bullish impulse is the trend created by three bullish and two corrective moves. Therefore, ALGO is in the last part of an uptrend.
In addition, all-time highs arise right at the confluence of fib retracement levels, which often act as tops as the wavelengths are often linked together.
The high is made with a 1: 1 length of waves 1-3 (white). This means that the length of shaft five is equal to the length pulled from the bottom of shaft 1 to the top of shaft 3. It also matches the 1.61 external fib retracement level of wave four (black).
If the upward move is extended, the next resistance will be at $ 3.50 at 1.61 lengths of waves 1-3.
Weekly ALGO / USDT Chart | Source: TradingView
You can see the ALGO prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto