Algorand (ALGO) – Pushing to underpin the short-term bullish structure

Algorand (ALGO) – Pushing to underpin the short-term bullish structure

Posted on Thursday, November 3 2022 at 9:17 pm GMT+0000

Algorand (ALGO) bulls are pushing efforts to underpin the short-term bullish structure, following the recent propulsion off the 50-period simple moving average.

Technically, the rising 20- and 50-period simple moving averages are promoting further bullish price action, something being also backed by the short-term oscillators which are conveying a stagnant increase in the positive impetus. The MACD crossed back beyond its signal line in the positive area while the RSI is stretching its uptrend well beyond the 50-neutral threshold.

So, the base scenario is for the two-week-old uptrend to see further continuation. Thus, for this case to gain more credence, the bulls will have to secure a durable move above Monday’s high of 0.382. If their efforts prove successful, the price will likely accelerate towards the 161.8% Fibonacci extension level of the last corrective wave at 0.406, located near the 9th of September top. Another leg higher from here will likely reach the 261.8% Fibonacci level at 0.445.

Should sellers retake control and sink the price below the 20 -period simple moving averages, they will target the most recent bottom at 0.343, fortified by the 50-day simple moving average. Any violation here will downgrade the technical picture and bring the 28th of October bottom of 0.320 immediately into scope.

In brief, Algorand is on the verge of upgrading its short-term sturdy bullish structure. A significant move above 0.382 is expected to release fresh buying, while only a drop below 0.343 could trigger some remarkable bearish developments.