The Algorand price is pausing following four consecutive days of gains. So can we expect the rally to resume, or is ALGO running into supply?
Like most of the market, Algorand (ALGO) is softer on Thursday and currently changing hands at $1.894 (-3.5%). Despite the minor setback, the ALGO token is up around 20% from last week’s low and continues to benefit from significant technical support. The recent performance has lifted Algorand’s market cap by around $2 billion to approximately $11.9, which places it amongst the 20 most valuable cryptocurrencies.
ALGO has traded well recently despite the Omicron variant’s threat to risk assets. In the last 7-days, Algorand has improved by around 8%, outperforming many of the top-ranked cryptos in the process. However, the price action has lifted ALGO into a range that typically attracts selling.
The daily chart shows a rising trend line at $1.580, and a series of lows around the $1.500 mark support the Algorand price. In simple terms, if ALGO remains above the trend line, the prospects look good, targeting the $2.150 area.
However, even after spoofing to $3.000 in November, ALGO hasn’t closed above $2.150 in the last ten weeks. Therefore, in my opinion, a daily close above $2.1500 clears the path towards the September highs at around $2.600.
The optimistic argument relies on Algorand holding above the trend and horizontal support. Therefore, a close below $1.500 would suggest a deterioration in the technical outlook, invalidating the bullish call.
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This post was last modified on Dec 02, 2021, 11:55 GMT 11:55