Algorand The price dropped below a descending resistance line since it hit an all-time high of $2,990 in November 2021. The lowest price reached was $0.16 and ALGO started its current uptrend from here.
However altcoin The price is trading at a key confluence of resistance levels at $0.280. The long-term descending resistance line and the $0.280 resistance area are forming resistance.
Therefore, the trend can be considered bullish when the price breaks out.
The bullish divergence on the weekly RSI precedes the entire increase (green line). The indicator can now break above 50, confirming the uptrend.
If ALGO price breaks, it could move to the next resistance at $0.410. However, if it tracks a rejection, the price could bounce back to the $0.170 support area.
Algorand (ALGO) Price Cannot Maintain Its Upward Movement
The weekly chart provides an unclear reading, while the technical analysis on the daily chart shows that the price is likely to drop before continuing its upward move.
The two main reasons for this are as follows.
Koinfinans.com As we reported, first, the price dropped from an ascending support line and then confirmed it as resistance (red icon). Secondly, a bearish bias was seen on the RSI (green line), whose trendline was still intact before the drop.
Therefore, the most likely price prediction suggests a downside move to the 0.5-0.618 Fib retracement support levels is likely.
On the other hand, recovering the line will invalidate this bearish prediction. In this case, ALGO price could rally towards the previously mentioned long-term resistance at $0.410.
As a result, the most likely Algorand price prediction for the remainder of February is a downward move towards the 0.5-0.618 Fib retracement levels of $0.215-0.231. On the other hand, a retracement of the short-term ascending support line will mean that the correction is complete and ALGO price can rally to $0.410.