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Algorand (ALGO) Still Above the Long-Term Support After Crypto Market Sharp Decline

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Algorand (ALGO) price has fallen in the past 12 days but has finally rebounded in the long-term support zone.

Despite the upward move, we cannot consider the trend bullish until Algorand breaks the current short-term downward resistance line.

Algorand trading margin

Since February 12, ALGO has fallen after previously trading at $1.86. The subsequent decline caused ALGO to hit a low of $0.79 on Feb.23.

This helps to check if the $0.90 area is a support level that previously served as a resistance level. On the contrary, the most recent resistance is at $1.80.

The technical indicators in the weekly timeframe are bullish, which indicates that the trend is bullish as well.

ALGO Chart. Source: TradingView

Price Projection

The daily chart shows that ALGO rallied at the Fibonacci retracement from 0.618 of the entire uptrend. This level is also in line with the $0.90 support area described earlier.

Despite the recovery, the technical indicators remain bearish. The RSI cross below 50 and the bearish cross of the Stochastic Oscillator prove this.

ALGO Chart. Source: TradingView

A closer look at the two-hour chart shows that ALGO has been following the downward resistance line since the high on February 12th. This line coincides with the Fibonacci retracement level at 0.618 and the smaller resistance zone at $1.22.

Despite the bullish technical indicators, we cannot consider the short-term trend bullish until ALGO manages to cross the line.

ALGO Chart. Source: TradingView

ALGO/BTC

Cryptocurrency trader CointraderNik sketched an ALGO/BTC chart and noted that ALGO is expected to grow significantly if current parabolic support is left unchanged.

 ALGO/BTC. Source: Twitter

However, since the tweet, the support area could not be set up and ALGO collapsed. The decline has caused it to fall to the 2,000 Satoshi support zone where it rebounded slightly.

Technical indicators remain bearish. The stochastic oscillator made a bearish crossover and the RSI fell below 50.

Therefore, ALGO can merge in the 2,000-3,200 Satoshis range. The direction of the trend has not yet been determined.

ALGO Chart. Source: TradingView

Conclusion

As long as the price is above $0.90, ALGO’s long-term trend is considered bullish. However, the ambiguity of the technical indicators and failure to break the short-term resistance line did not confirm the direction of the short-term trend.

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