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Algorand Price Analysis: ALGO slowly stabilizes above $1.75, consolidation set to continue?

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  • Algorand price analysis is bearish today.
  • ALGO/USD set lower high at $1.90.
  • The market continues to consolidate.

Algorand price analysis is bearish today as we expect another higher low to be set later today. Therefore, ALGO/USD should continue moving in an increasingly tighter range over the following days.

Algorand Price Analysis: ALGO slowly stabilizes above $1.75, consolidation set to continue? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has seen bullish momentum return over the last 24 hours. The market leaders, Bitcoin and Ethereum, are up by 3 and 3.8 percent, respectively. Meanwhile, Avalanche (AVAX) is among the top performers, with a gain of over 8.5 percent.

Algorand price movement in the last 24 hours: Algorand sets lower high as the consolidation continues

ALGO/USD traded in a range of $1.79 – $1.91, indicating mild volatility over the last 24 hours. Trading volume has declined by almost 60 percent, totaling $650 million, while the total market cap trades around $11.48 billion, ranking the coin in 20th place overall.

ALGO/USD 4-hour chart: ALGO set to retrace again?

On the 4-hour chart, we can see bears slowly taking over as the Algorand price action will look to set another higher low to continue the consolidation.

Algorand Price Analysis: ALGO stabilizes above $1.75, consolidation set to continue?
ALGO/USD 4-hour chart. Source: TradingView

Algorand price has seen strong volatility this week. After a several-day decline from $2.30 to $1.55, a strong lower low was set on the 16th of November. From there, a sharp reversal followed on the 18th of November, quickly breaching the previous high and spiking to $2.82.

However, most of the gain was quickly retraced, with support found at $1.75 the same day. Since then, we have seen ALGO/USD set both lower high and higher low, indicating consolidation in an increasingly tighter range.

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Yesterday, the Algorand price action tested the $1.75 mark, with a rally to $1.90 establishing another lower high. Since then, ALGO/USD has seen bearish momentum slowly return, likely leading to another retracement over the next 24 hours.

Algorand Price Analysis: Conclusion 

Algorand price analysis is bearish today as we expect another drop lower to follow over the next 24 hours after another lower high set. Therefore, we should see ALGO/USD move towards $1.75 support, where a higher low will be set to continue the consolidation.

While waiting for Solana to move further, see our guides on the Best crypto exchange, how to mine Algorand Classic, and Cardano vs Algorand.

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With the dip behind it, here’s how Algorand’s short-term prospects look like

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After Bitcoin’s weekend flash crash, over $2.5 billion market liquidations shook the larger market. This brought the cumulative crypto-market cap down to $2.2 trillion. As expected, major altcoins seemed to bleed amid the wider sell-off.

However, altcoins like Terra (LUNA) and Algorand (ALGO) held comparatively well, taking the market by surprise. 

Much like the larger market, Algorand too wasn’t completely unaffected by the Bitcoin dip. Especially since ALGO lost close to 25% of its value in just a day. Even so, Algorand’s quick rebound was impressive.

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In fact, the #18 ranked coin by market cap held well above the crucial $1.6-level. This has acted as a long-term support level since September. Seemingly Algorand’s price stability stemmed from some key factors, including high institutional interest, collaborations, and partnerships, as highlighted by a previous article. 

Furthermore, as ALGO traded close to the lower support line, the crucial question remained – When will Algorand’s price break out and what will it need for the same?

Algorand’s Ethereum killer status strengthening?

Over the past year, Algorand has quickly emerged as a contender in the smart contract platform space as the market’s focus seemed to shift towards a multi-chain approach. In fact, the platform’s extensive network of partners has further strengthened its narrative as a strong Ethereum killer. 

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Just recently, Borderless Capital announced the launch of a $500 million ALGO Fund to help develop projects built on the blockchain. This will include projects “to disrupt the creators’ economy with NFTs and initiatives. Well, something that can increase capital in the ALGO’s DeFi ecosystem through liquidity mining, lending, borrowing, and yield farming.”

Notably, in September this year, the platform launched a $300 million DeFi fund. Also, before that in April 2020, Algorand announced an investment of 250 million ALGO to encourage the creation of Dapps. All this has pushed the platform’s image in the DeFi space. 

On 2 December, Algorand’s TVL touched the $100 million mark. Moreover, at press time, its TVL was up 6.19% over the last 24 hours, even though the larger market suffered and DeFi TVL fell considerably. 

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Source: DefiLama

What helped hold the price?

Algorand plunged below its critical support at $1.50. Post the fall, however, there was a ‘buy the dip sentiment’ among HODLers seen in the long bearish wick on its daily chart. This support from the retail side helped sustain price levels.

That being said, looking at more long-term perspective support from HODLers (A section that saw a considerable rise over the last few months) could be key to ALGO’s price rally in the near future. 

Source: IntoTheBlock

Notably, Algorand’s volatility has risen lately and this could be a good sign. Previous ALGO rallies have been accompanied by higher volatility too, as seen in the image below. 

Source: IntoTheBlock

At the time of writing, the alt’s Open Interest and funding rate had slumped. However, over $2.7 million worth of longs were liquidated on 4 December. This could lead to some short-term corrections as the price action on the lower timeframe looked bearish. 

Source: Coinalyze

Nevertheless, a push from bulls above the simple moving averages could get the coin’s price action back on track. That being said, Algorand’s rise in the DeFi space, the NFT space and, its strengthening narrative as an Ethereum killer could further boost price growth in the long term. 

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Algorand(ALGO) Price Prepares for a Massive Pump Ahead, Is ATH On Its Way?

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Ever since the crypto space faced a similar crash to that of May, many assets are attempting very hard to recover losses. ALGO price also faced a huge drop of more than 30% and revisited lower levels around $1.3. However, the trend appears to have reversed and the asset with some pumps and dumps is approaching the immediate resistance levels around $1.8. 

The Algorand recently hosted a ‘Decipher event’, a gathering intending the Algorand developers, businesses, and innovators to learn about several topics. Moreover, the blockchain also launched an NFT marketplace called AlgoMart. This aims to ease out the NFT launch process offering modular tools, integrated payment systems, and many more.

After swinging within a descending parallel channel for almost a month, the price is expected to breach through upper resistance levels soon. 

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Currently, the ALGO Price is trending within a descending channel ever since it smashed the yearly highs around $2.5 regions. Woefully, it fell into a deep well hitting the bottom of the channel but sustaining above $1.5. However, the recent sell-off pulled down the price below the strong support levels and slashed it to $1.32 levels. Luckily, the price rebounded well before reaching the support levels of the channel and initiated a notable uptrend. 

At the press time, the Algorand price is hovering around $1.833. The altcoin is heading strongly towards $2 with a massive jump of 10.85%. The volume also spiked to a large extent of about 30%  with a market cap crossing $11 billion. The uptrend is likely to continue slowly yet steadily. However, the crucial levels reside in between $1.99 to $2.07 which needs to be cleared to reinstall a bull rally. 

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Why Algorand can hit $3 over the next few weeks

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  • Algorand price has spent nearly sixty days in a consolidation pattern.
  • Bulls have been positioning Algorand for a bullish breakout within the Ichimoku Kinko System.
  • The $3.00 price level is the next major high and target.

Algorand price action has been mostly constrained between the $1.62 and $2.14 value areas over the past two months. Multiple attempts by bulls to break out higher have not met with success;at the same time bears have been prevented from moving Algorand lower. A pattern now appears to be forming which may end this impasse.

Algorand price eyes a breakout to hit a new all-time high at the $3.00 value area

Algorand price has formed a very textbook example of what a bull flag looks like. Bull flags are consolidation channels that show up after an uptrend. In technical analysis, consolidation after a strong uptrend is considered a sign of strength and trend continuation. The Ichimoku Kinko Hyo system can assist with identifying appropriate price levels that would indicate a new uptrend is likely to occur. 

Algorand price buyers would only want to go long when the daily close is above the Cloud, Tenkan-Sen, and Kijun-Sen. Additionally, buyers will want to ensure the Chikou Span is above the candlesticks and in open space. The Algorand price daily close needs to be at or above $2.30 to confirm buyers’ positive and robust breakout. However, the same is true for the downside. Bears have been equally interested in creating strong shorting conditions for Algorand. It is more difficult for Algorand to move lower than it is to move higher. Sellers have to contend with pushing a daily close below the 50% Fibonacci retracement at $1.62 to create any shorting opportunities.

ALGO/USDT Daily Ichimoku Chart Even if sellers can even push Algorand price below the 50% Fibonacci retracement, downside risks are, however, minimal. In addition, a high volume node in the 2021 Volume Profile and the 61.8% Fibonacci retracement share the $1.45 value area, limiting any potential swings south.  

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