Dear readers, hello! Here Romain, for a technical review around the evolution of cryptocurrency prices ALGO. Technical review of a blockchain renowned for its speed of transactions.
Algorand is a project born in 2019. It is a blockchain that serves as a support for the creation and development of new financial products as well as decentralized services. Its cryptocurrency, ALGOstands out from the crowd due to the low energy it releases (Pure Proof of Stake) and is nicknamed “green blockchain”. Also, she is able tocomplete transactions in an average time of 4.5 seconds.
ALGO – Weekly chart: Has a low point been found?
After the strong excitement around this project, the cryptocurrency ALGO is part of those who suffered the most during the downward trend at the start of the year.
Indeed, since the highs of November, at $2.8, ALGO lost 89% of its value. It would not be the crypto market without this volatility that is so dear to it…
For the moment, the weekly chart calls for caution. First, prices failed to break the Weekly Tenkan. On the other hand the ROI remains stuck to its oversold zone and only suggests a class 2 bullish divergence. It accompanies this double low point that prices realize. This formation will only be valid by breaking the neck line. Located at $0.38.
The first positive sign is that the indicator MACD sees its moving averages returning to the upside. It therefore suggests a breakout retest of the Weekly TenkanFirstly.
Finally, prices seem to have found a medium-term low point who is still holding on, $0.28. It is this zone which made it possible to rebound during the summer and which has again saved prices during the last very volatile days.
ALGO – Daily chart: Short-term rebound in construction?
After this long period of suffering for ALGOzooming in on the double low point of the weekly chart allows you to see some interesting details.
First of all, the daily tenkan has just been broken. This therefore calls for a retest of the bottom of the cloud by the Lagging Span. Then, if it is conclusive, to a breakout of this same cloud by prices. Located at $0.33, this fine cloud will pose few problems to a well-established short-term trend. To go further, a breakout of this level gives as an extension SSB’s dish located at $0.52. However, buyers will have to show strength and willpower in a somewhat explosive situation.
The path remains long for ALGOas for the market as a whole, however this low point allows it to constitute a solid base of accumulation for investors who take advantage of the current crisis.
Finally, if a breakout from below operates, the next significant support is at $0.25.
This will depend on certain key factors: increase in key rates by the European Central Bank, new confinements in China… Other bad news that the market has not yet anticipated…? In short, the road remains long and sometimes, not investing is already investing.
Delegate the management of its cryptocurrencies while remaining in control of its funds ? Nothing could be easier with the crypto-asset manager CryptoTrader™a secure trading tool, easy to use and 100% automated.
Trading cryptocurrencies carries a high level of risk, and may not be suitable for everyone. It is recommended that you fully inform yourself of the associated risks, and only invest amounts that you can afford to lose.
The content offered on the CryptoActu.com site is solely for educational and informative purposes. They do not in any way constitute recommendations and cannot be considered as an invitation to trade financial instruments.
The CryptoActu.com site does not guarantee the results or the performance of the financial instruments presented. Consequently, we decline any responsibility in the use which can be made of this information and the consequences which can result from it.