The Algorand (ALGO) price has been moving upwards after reclaiming a support area at the beginning of Nov. ALGO should continue increasing towards the resistance area at $0.43.
On Nov. 4, ALGO reached a low of $0.224, the lowest price since the beginning of Jul. It began an upward move shortly afterward, culminating in a high of $0.421 on Nov. 25.
Since then, ALGO has been trading between support and resistance at $0.26 and $0.43, respectively, currently sitting in the middle of the range.
Technical indicators are bullish, supporting the possibility that ALGO will break out above the resistance area. If it is successful, the next resistance area would be at $0.52.
Cryptocurrency trader @i9theghost5 tweeted an ALGO chart, stating that it could increase by 100% over the next few weeks.
While this is possible, it still has to break out above the $0.43 area first and move upwards at an accelerated pace.
The short-term chart shows that ALGO has bounced at the minor support area of $0.32, the 0.618 Fib retracement level of the entire upward move.
The bounce was significant and technical indicators have turned bullish, supporting a continuation of the upward move.
Furthermore, the shorter-term 30-minute chart shows a breakout from a descending resistance line and a reclaim of the minor $0.34 resistance area, supporting the possibility of upwards continuation.
The ALGO/BTC chart shows a breakdown from the long-term 2250 satoshi support level, an area which had previously held since Oct 2019. Afterward, ALGO validated this area as resistance on Nov. 2020 (shown with the red arrow below) before declining again.
Despite the bearish price action, technical indicators are bullish, suggesting that another breakout attempt is likely. The three-day RSI has generated bullish divergence, the MACD is moving upwards, and the Stochastic Oscillator has just made a bullish cross.
Therefore, the price is likely to make another breakout attempt. However, at the current time, we cannot determine if it will be successful.
To conclude, while ALGO is likely to move towards the $0.43 resistance area, we cannot confidently predict a breakout at the current time.
Similarly, ALGO/BTC is expected to re-test the 2250 satoshi resistance area, but the possibility of a breakout is currently uncertain.
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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Source: Be In Crypto