Algorand price resumed its strong push upwards yesterday, after a drop of 7 per cent on Wednesday. Today, the bullish trend looks to be continuing, with the Algorand price up by a percentage point. Today’s session is also looking like it will continue trending upwards.
The chart below shows Algorand’s price has traded within support and resistance levels of $0.27 and $0.43, respectively, since May 23. However, the chart also shows a formation of another resistance level at $0.36, which Algorand has failed to break out of since June 11, despite piercing it a number of times.
Looking at today’s trading session, Algorand is up by a percentage point, extending yesterday’s one per cent gain. However, the chart also shows that, on Wednesday, Algorand had a huge bearish move that resulted in the crypto losing 7 per cent of its value. The drop came after the previous day’s price action pierced through the $0.36 resistance level, and it was likely that the trend would continue and touch the other resistance level at $0.43.
Therefore, basing my analysis on the technicals indicated above, I expect the current bullish trend to continue. Part of the reason for this is because, after Wednesday’s 7 per cent drop, yesterday’s gain showed the crypto’s resilience in the markets. It also indicated the resumption of the bullish trend, which started on July 13 and had seen the prices rise by 30 per cent before the drop.
The price action also indicates a likelihood of Algorand hitting the $0.36 resistance level and breaking to the upside. There is a high likelihood that we will see prices continue to aggressively move upwards and likely hit the $0.43 resistance level, which has not been hit since May 23.
However, should the price trade below the $0.30 price level, my analysis will be invalidated. It will also mean a possible move to the downside.
This post was last modified on %s = human-readable time difference 10:55