In today’s technical analysis of ALGO, we will discuss some of the key factors that will influence its price overall performance. Algorand is a robust blockchain technology-based platform that enables users to build innovative financial products and means of exchange. It integrates centralized and traditional finance. It is an open-source PoS-based protocol that is highly scalable, fast, and secure with advanced privacy features. ALGO is the native token of this ecosystem.
On April 12, 2021, ALGO started trading at $1.52. As of April 18, 2021, the closing price of ALGO is $1.46. Thus, in the past week, the ALGO price has declined by 4%. In the last 24 hours, ALGO has traded between $1.42-$1.53.
Day-Ahead and Tomorrow
Currently, ALGO is trading at $1.49. The price has increased from the opening price of $1.45. Thus, the market seems uptick.
The MACD and signal lines have just turned positive. Moreover, a bullish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is positive. Hence, we can expect the ALGO price to go up further.
However, the OBV indicator is declining gradually. Thus, selling volumes are slowly overtaking buying volumes. Heavy offloading activity will push the ALGO price downwards. Thus, the OBV indicator is pointing towards a price dip.
The RSI indicator faced rejection at 56% and fell to the current level of 38%. Like the OBV indicator, the RSI indicator too is showing high selling pressures. Thus, we can expect a price pullback soon.
In a nutshell, a price drop is on the anvil but since the overall market momentum is bullish, we can expect the price to start rising after some time. The ALGO market is currently in a price adjustment phase. So, we need to wait and watch to understand the price direction.
ALGO Technical Analysis
As per technical analysis, the price is currently above the Fibonacci pivot point of $1.47. If the price uptrend is strong, we can expect it to break out of the first Fibonacci pivot resistance level of $1.51 in some time.
The price is soon likely to test and break out of the 38.2% FIB retracement level of $1.49. If it breaks out of the 23.6% FIB retracement level of $1.50 too, then probably the price upswing is strong. In that case, we can expect the bullish momentum to continue today as well as tomorrow.