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

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

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 9^th 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 28^th 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.