We see support at $ 0.285, and resistance at $ 0.435.
Daily technical indicators are bullish.
The price could start a bullish 5 wave
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The price of Algorand (ALGO) has been in decline for almost a month. That said, technical indicators and its likely wave count indicate that a turnaround is near.
Top of its trading fork
The course of ALGO has declined since its peak at $ 0.76 on 14 August. It hit a low of $ 0.316 on September 5, before rebounding.
The price is currently very close to the resistance of $ 0.435, which rejected it on September 11th. The closest support area is at $ 0.285.
Technical indicators are bullish:
The MACD is on the rise and has practically turned positive.
There are hidden bullish divergences in the RSI.
The Stochastic RSI has formed a bullish cross.
The hourly chart shows that price has regained minor resistance at $ 0.40 and is in the process of validating it as support. He did the same with the moving average (MA) at 100 hours.
If these are confirmed as support, the price is expected to break through the resistance area of $ 0.435.
Cryptocurrency trader @ Glowto1994 claims that the ALGO price will drop to around $ 0.33 before rising again and reaching a new high above $ 1.
Since the March 13 bottom, it looks like ALGO has started a bullish and impulsive formation (in black below) at the extended third wave. The aforementioned high of August 14 was likely the peak of the third wave, and price has since been correcting.
If price starts wave 5, it could push it up to the suggested target of $ 1
We will now look at the fourth wave, which is corrective, to determine at what level it will end.
By observing the fourth wave in more detail, we notice that it probably appears within an ABC formation (in blue below). It is currently approaching the end of wave C, which is formed from a bearish impulse (in red).
Based on the length of wave A, a possible low could be at $ 0.256. In this case, waves C and A would present a ratio of 1.61: 1.
A rise above the sub-wave 1 low to $ 0.51 would reject this wave count.
In conclusion, the price of ALGO is expected to decline once again towards $ 0.256. It should then resume its upward movement.
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