Crypto Update: Can ALGORAND bounce if buyers hold support?
Today we’re looking at Algorand (ALGOUSD) as price has started to re-hold at key support. Will we see buyers hold the move higher today and set up a new hold?
Our focus remains on key support, but let’s look at the lead up to this level. First, we can see the ending diagonal that has been confirmed with the first leg higher. This also set up the first hold point of key support. It’s good to see a pattern backing up a new move higher. We saw resistance come in at 0.957. This led to the decline that brought us back to key support.
Yesterday’s bar could be seen as exhaustion, but we will need to see if buts can hold the fightback through the NY session. We can also see a zig-zag forming. We have marked it in grey, and you can see the extension idea with the question mark. Our idea is if support holds and we see a new rally, we would look for the first test to come in at the last key level of resistance. We are also watching the grey line marked potential resistance as that area went from resistance to support and back to minor resistance.
From here, we want to see a hold off support and a new rally carry forward. We would like to see a new leg higher, respect the zig-zag idea, and if we do see any new moves lower, we want to see new higher lows and higher highs after the red trendline break.
Pressure on buyers into the NY session and into tomorrow to see if they can hold support and get a new move higher underway. Obviously, a break below support cancels out the above, and traders will be looking to see if a new downtrend is getting underway.
* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.
Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.
Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.