What's Next For Algorand After Yearly High? | Credit: Hameem Sarwar
Key Takeaways
- Algorand (ALGO) has created a double-bottom pattern.
- The ALGO price reached a new yearly high of $0.359 today.
- How long will the Algorand price increase continue?
The ALGO price has plunged since its all-time high of $2.99 in November 2021. In August 2024, ALGO fell to a low of $0.094, a decline of 96% since the all-time high.
However, ALGO has regained its footing and is in the process of creating its fourth successive bullish weekly candlestick.
Excitement around the the ALGO Foundation India summit next week possibly adds to the interest in the token.
Today, the ALGO price broke out from a long-term horizontal resistance area and reached a new yearly high. Since there is no more resistance for some time, the ALGO price could double yet again. Let’s analyze the price action and see how likely this is.
ALGO Yearly High
The ALGO price has created a long-term double-bottom pattern (white icons) between August 2023 and 2024. The second bottom created a long lower wick, and the price has accelerated.
ALGO created successive bullish candlesticks in the past four weeks, leading to a new yearly high of $0.359 today, on Nov. 29.
This week, Algorand moved above the long-term resistance at $0.280, which had existed since December 2022. Now, it has reached the resistance trend line of an ascending parallel channel that has contained the price action for over a year.
If the ALGO price breaks out and closes above the channel, it will face no more resistance until $0.750, allowing for a quick ascent.
Technical indicators support the breakout. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) both generated bullish divergences (green) and are increasing. The RSI is above 50, while the MACD is above 0.
As a result, the weekly time frame suggests that the ALGO price will break out and reach the $0.750 horizontal resistance area.
Bullish ALGO Prediction
The 3-day wave count gives a bullish price prediction for Algorand. It shows the ALGO price completed an A-B-C correction (black) after a five-wave upward movement (white).
Then, ALGO started another five-wave increase in August, currently in wave 3.
It is unclear if the entire movement is a large A-B-C structure or a new five-wave upward movement. However, the ALGO increase is likely to continue in both cases. Because of the price action, a new long-term five-wave increase (yellow) is more likely.
Giving wave three 1.61 times the length of wave one leads to a high of $0.55. Then, after a brief correction, the ALGO price could continue to wave five toward the long-term resistance of $0.750 and possibly break beyond it.
ALGO Could Double
The ALGO price has increased rapidly in the past four weeks. Because it broke out from the $0.280 horizontal resistance area, ALGO has cleared the main obstacle until $0.750.
As a result, the upward movement is likely to accelerate until the price reaches it. Short-term declines could occur before the price reaches its target.
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