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Algorand (ALGO) Presses on Toward $0.42 Resistance

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The Algorand (ALGO) price has reclaimed an important support area and has been moving upwards since.

The upward move is expected to continue until ALGO reaches one of the prime resistance areas outlined below.

ALGO Deviates Below Range Low

On Nov. 4, the ALGO price reached a low of $0.224. This was slightly below the main support area of $0.26.

However, ALGO reclaimed the level shortly afterward and has been increasing since. This suggests that the previous decrease was just a deviation below the range low, an event which is often followed by a significant move in the other direction.

The closest resistance area is found at $0.428, which is also the 0.382 Fib retracement level of the entire previous decrease.

ALGO Deviation Below Range
ALGO Chart By TradingView

Future Movement

Technical indicators in the daily time-frame are bullish and support a move toward the aforementioned resistance area.

The RSI, MACD, and Stochastic oscillator are increasing, and none have generated any bearish divergence.

ALGO Increase
ALGO Chart By TradingView

The shorter-term 6-hour chart also supports this possibility. ALGO has reclaimed the minor $0.295 area and validated it as support in the form of a long lower wick.

Since there is no bearish divergence in place, ALGO is expected to continue moving upwards towards the given target.

ALGO Short-Term
ALGO Chart By TradingView

ALGO Wave Count

Cryptocurrency trader @TheTradinghubb outlined a wave count for ALGO, in which the price moves up to $0.35. Since the tweet, the price briefly touched $0.37 before dropping back slightly to $0.345

ALGO Wave Count
Source: Twitter

The rate of the increase makes it seem likely that this is a bullish impulse rather than it being an A-B-C corrective structure.

If accurate, the price is likely in wave 3 (shown in black below). The $0.42 target given by the 2.61 Fib extension also fits with the previously outlined $0.42 area, making it a likely level for a top to be reached.

A decrease below the wave 1 high at $0.298 would invalidate this particular wave count.

ALGO Wave Count
ALGO Chart By TradingView

Conclusion

ALGO is expected to continue increasing at least until it reaches the $0.42 resistance area and could possibly go higher.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Source: https://beincrypto.com/algorand-algo-presses-on-toward-0-42-resistance/

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