Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.
The Algorand price has broken out of a symmetrical triangle formation as large volume buying suggests more gains be on the horizon.
Algorand is currently trading at $1.0595 (+15.95%).
Over the last two weeks, Algorand has been trading in a narrowing sideways range. As the trading range declined, the volume followed.
This has resulted in a triangle pattern being formed on the chart. Narrowing ranges and declining volumes can often lead to the opposite. Typically when the price finally breaks free from this pattern, it leads to a material price move.
In today’s trading, the Algorand price decisively cleared the top end of the triangle. As the price crossed the line at $0.9530, increasing volume indicates buyers chased the momentum higher.
Whilst there is still some work ahead of the price, the current trajectory could signal a return to levels last seen before May’s cryptocurrency bloodbath.
The 2-hour price chart clearly shows the two opposing trend lines that make up the triangle. At the top end is a descending trend line from the 21st of May.
Below the price, a rising trend from the 23rd of May is currently seen at $0.8650.
The chart also illustrates the increase in trading volume as the price broke higher. This trend line now becomes an important support level, and the price may well need to retest this support before making further gains.
Ultimately, my upside target following this technical break-out would be the series of highs from the 18th of May, the day before Crypto’s Black Wednesday.
Nonetheless, given the volatility in digital assets, I suggest longs should place stops below the support of the descending trend line at $0.9530.
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