In this news Wednesday crypto nuggetwe are going to look at the ALGO cryptocurrency of the Algorand Blockchain. Having rebounded like the whole market, what is its current situation? Is it resting on support, or is it under resistance? This is what we will see in this technical analysis by identifying the key levels to watch on the asset, which will allow us to determine the bias to favor.
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ALGO is below an important technical threshold
Since March 2022, ALGO is again evolving in a wide technical area with a lower limit at $0.162 and an upper limit at $0.822. Having re-entered this zone downwards, ALGO fell sharply, initially heading for support at $0.275. Having remained above for several months, ALGO broke this level downwards, which paved the way for a return to the lower limit.
Having rebounded on this level, ALGO is now under the old support. Is this a technical pullback before the asset drops or are we ready to see an upward re-entry of the support zone. For now, until proven otherwise, with a price return above $0.275, the bias to have on ALGO is bearish. As a result, we can envisage, in the long term, a return of the price to its lower limit.
Not displayed on the chart, there is an intermediate technical level between the current price and the lower limit, it is located at $0.20. This is a level that the price has reacted to many times. If ALGO starts a new bearish leg, it is highly possible that the price will go for the umpteenth time on this level. However, if it does not succeed, ALGO will indeed take the direction of the lower limit at $0.20.
Is the course in a key moment?
In this second part of the analysis,daily scale, let’s take a look at the asset’s situation over the past few days. Currently, the course compresses between a multitude of technical levels. On the one hand, ALGO is moving above a horizontal level at $0.228/0.237 which is in confluence with the MA100 and on the other hand, ALGO is below its EMA13 which materializes the uptrend for several weeks and which is in confluence with the technical zone that we had identified on a weekly scale.
Here, on the chart, are two scenarios that can be envisaged and will depend on the ability of the asset, over the next few days, to overcome current resistance. By regaining the $0.275ALGO is about to relaunch the bullish momentum. However, nothing will be decided yet since the price will have to be able to free itself from the EMA200 under which it has been evolving for more than a year. In the event of a bullish breakout, the first technical level to watch is a technical level at $0.366.
Thus, uncertainty is currently on ALGO, especially since the market is at a level where it must rebound to preserve its bullish momentum. In case of fall of bitcoin and of theether, ALGO will likely unscrew lower. Therefore, the next few days will be one to watch and rely solely on ALGO’s ability to regain $0.275. Given the current price situation, it is preferable to opt, for the moment, for a bearish bias on the asset.
The next few days will therefore be crucial for the preservation of the momentum bullish. A price acceptance below the green zone will be a bad sign and could result in a strong bearish leg on the asset.
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