Algorand (ALGO) has gained approximately 10% within the past few days. The alternative cryptocurrency token mimicked Bitcoin’s climb from $20.8K to beyond $23K, with ALGO rebound to $0.328 from $0.3. Though the bounce back, ALGO was yet to exhibit a bullish picture on its higher timeframes. Meanwhile, the altcoin has hit a local resistance that has discouraged bulls’ action since June. Can we expect a higher move from Algorand?
Algorand 12Hr Chart
The 12-hour timeframe shows a range formation between $0.36 and $0.29. The range’s mid-point stands at $0.327. This value area might oppose price action in either direction. That means the mid-range might serve as resistance and support for Algorand depending on where the alt was standing. Meanwhile, the area boasted an impressive confluence with the $0.3288 resistance level, the zone that served as a foothold in December 2020.
Long-term ALGO investors should care that the price explores the 2020 value area. That might irritate bullish sentiment. Nevertheless, Algorand has respected range lows in the last few months and might provide a lucrative ‘buy’ opportunity following a retest.
The 12hr RSI (Relative Strength Index) stayed beneath the 50-neutral and seemed to retest the area as resistance, indicating bearish strength.
Algorand 4Hr Chart
The 4hr timeframe confirmed the importance of $0.328 for the Algorand cryptocurrency price. It presented some hurdles to the bullish progress in early July. Also, the same mid-range level opposed selling momentum last week before succumbing.
The concern was that ALGO failed to overturn the mid-range zone to support, even with Bitcoin breaking past the resistance at $22.7K. That indicated weakness by ALGO buyers.
The 4hr Relative Strength Index swayed at 54 and stayed beneath the 50-neutral within the last few days. That showed that the bearish strength might be developing to a standstill. Yet that doesn’t reflect bullishness behind Algorand.
The Stochastic Relative Strength Index stayed within the overbought level and created a bearish cross while hinting at a weak pullback. Also, the Awesome Oscillator hovered below the zero line, at 0.0 during this publication. Thus, it might trigger a bullish cross soon, though that doesn’t confirm massive bullish strength behind ALGO.
The A/D indicator maintained declines within the previous week. The index failed to jump even as the altcoin surged 8% over the last few days. Therefore, demand might not have accompanied the upside move.
The absence of demand in ALGO was a concerning factor. Considering price action, flipping 0.328 to support might present a buying opportunity, with invalidation beneath $0.313. meanwhile, a safer ‘buy’ opportunity would be at the range’s bottom, around the $0.29 mark. Bitcoin climbing past $24.5K will see Algorand visibly confirming a bullish bias.
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