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The Algorand proof-of-stake [PoS] blockchain platform recently launched its Algorand Virtual Machine, which quickly draws new money into the ecosystem. Let’s analyze the ALGOUSDT chart following a top-down approach, starting from the daily time frame, and wrapping it up on the 4HR time frame.
Algorand (ALGO) Daily Chart Analysis
A bullish campaign started on the daily time frame of the ALGOUSDT upon entering the RSI overbought area [level-75], indicated by the green label of the on-chart RSI indicator. The bulls continued to scale into their buy position as the RSI continued to hover above the level-25 and finally dipped below level-25 on 21 Sep ’21.
Although the RSI dip below the level-25 may send a bearish outlook towards the pair, the recent price close above bearish inside bar resistance and bullish divergence on 21 Sep ’21 hint that the bulls are still lurking around the corner.
An entry of the RSI above the level-75 would confirm a bullish comeback as the ALGOUSDT exchange rate break above the bearish divergence trend line.
Algorand (ALGO) 4HR Chart Analysis
Coming down to the 4HR time frame, ALGOUSDT plunged into a downtrend after a collapse of bullish inside bar support [2.3242] on 12 September ’21 at 16:00, setting new resistance on the bearish engulfing candlestick pattern [2.5574].
As old short sellers take profit off the table and join new bulls, the ALGOUSDT signaled its first regular bullish divergence on 21 Sep ’21 at 20:00.
- Bullish/Bearish Scenario
We observe a buildup of demand for the ALGO token, following the recent announcement of the Algorand virtual machine on 29 September ’21.
- A bullish divergence on 28 September 20:00 serves as a trigger confirming that the AVM news is a positive one for the PoS Altcoin.
- In addition to the bullish divergence, the price breach of the bearish divergence trend line also shows massive demand brewing for the ALGO token.
- Conversely, a price slump below the 1.5211 support is possible, a black swan event that could signal a takeover by bears across the crypto market.
Algorand (ALGO) Intraday Levels
- Spot rate: 1.7445
- Mid–Term Trend [H4]: Uptrend Starts
- Volatility: Low
- Support: $1.5211 and $1.5529
- Resistance: $1.7707, $1.8570, and $2.3242
The post ALGO Price Analysis: Bulls Gearing Up For A Rally to New ATH appeared first on Coingape.
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