Algorand is a blockchain-based platform for the development of decentralized applications, financial products, and open-source protocols for value exchanges. It aims to expedite the convergence between conventional and decentralized finance. ALGO is the customized token of this ecosystem and the technical analysis is as follows:
On May 27, 2021, ALGO opened at $1.02. On Jun 2, 2021, ALGO closed at $1.02. Thus, in the past week, there was no change in the ALGO price. In the last 24 hours, ALGO has traded between $1-$1.05.
Day-Ahead and Tomorrow
Currently, ALGO is trading at $1.04. The price has increased from the day’s opening price of $1.02. Thus, the market seems bullish.
The MACD and signal lines are positive. Thus, the overall market momentum is bullish. However, a bearish crossover by the MACD line over the signal line has occurred. Plus, both the lines are closer to the zero line and may turn negative soon. Thus, we can expect a price pullback.
Currently, the RSI indicator is at 45%. It faced rejection at 63% and fell to this level. Thus, selling pressures are higher than buying pressures. Hence, the ALGO price may start falling soon.
Besides, the OBV indicator is falling. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the ALGO price.
In a nutshell, all three oscillators have indicated an impending price decline. However, we have to wait and watch to see if the price pullback is a temporary corrective action or the beginning.
ALGO Technical Analysis
Currently, the price is below the first Fibonacci pivot resistance level of $1.04. The price may soon fall below the Fibonacci pivot point of $1.02. If the bears remain strong, the price is likely to fall below the first support level of $1 as well.
Presently, the ALGO price is above the 23.6% FIB retracement level of $1.04. The price is likely to test and fall below it and further below the 38.2% FIB retracement level of $1.03. Thus, as of now, the bearish trend is strong and likely to continue today and tomorrow.