Algorand Breaks out but Fails to Sustain Rally (TA for 26th of February)
Algorand Breaks out but Fails to Sustain Rally (TA for 26th of February)


On February 25, the Algorand price broke out from a descending triangle. However, the increase was short-lived and Algorand has decreased to pre-breakout levels since.

 

Algorand (ALGO) Price Highlights

  • ALGO broke out from a descending triangle.
  • There is support at 4300 and 3950 satoshis.
  • The RSI is bearish in most time-frames.
  • The price is following a longer-term ascending support line.
  • There is resistance at 6150 satoshis.

Will the ALGO price break out? If yes, where will it go afterward? Keep reading below if you are interested in finding out.

Triangle Breakout

The price has broken out from the descending triangle. However, it has not come close to reaching the target of 6150 satoshis, rather has fallen to pre-breakout levels once more. Currently, the price is barely holding on to the 4300 satoshi support area, which was the horizontal support line of the triangle.

On a more bearish note, the short-term RSI has fallen below 50, something it has not done since the rate of increase accelerated on February 19.

351665157-835f0257c8a40a8228610fe588d63134d8eed4fcf83f26d7fe1fa42d64a3b3ac.png

Ascending Support Line

The 12-hour chart gives a clearer picture of the possible future movement. The RSI has generated some very significant bearish divergence, indicating that the price will decrease. The belief is strengthened by the creation of a bearish engulfing candlestick.

The price has also been following an ascending support line, in place since January 20. The ascending support line will coincide with the 3950 satoshi support area at the beginning of March, making it a very likely place for a trend reversal, if the price were to decrease all the way towards it.

351665157-b263be965f2591f596adb79e357c985f3fc2edda92c23d8a9413c0b0aa49c8c5.png

ALGO Long-Term Movement

Even though the price failed to come close to reaching the target, I still agree with its placement, since the long-term resistance area is found at 6150 satoshis.

Our long-term outlook is still bullish since I believe that the price is currently in the longer-term third wave of a five-wave Elliott formation, which is expected to end near 6150 satoshis. A breakdown below the 3950 satoshi area would invalidate this possibility.

 

351665157-d10344817792ee81bb975c2901e8ccad7b203622f4b1c3e5bc6c8b4ad347ce51.png

To conclude, the Algorand price has broken out from a descending triangle but reversed quickly afterward. After a retracement towards 3950 satoshis, I believe the price will increase towards the resistance area outlined above.

Where do you think Algorand is going? Also check out my favourite Telegram Trading chat, where you can discuss and find out more about projects. Click here to start conversation with other crypto traders! Also if you like this sort of content (TA analysis) leave a comment and I can do more of them about specific coins you are interested in. 

And don't forget to tip / follow me if you enjoyed my content!

 

 


pheonixdown-dee
pheonixdown-dee

I am a social media manager living in Prague. I am an avid crypto enthusiast.


Interesting Crypto Projects
Interesting Crypto Projects

Crypto projects that have taken my fancy, this is not investment advice but just to look into what the projects are trying to do.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.