Bear Trap triggers a 30% upswing in ALGO price

Struggling to settle the trend volatility near the $0.66 support zone, the (Algorand)ALGO prices gain bullish influence as the overall crypto market is recovering positively after a sharp fall. But should you consider buying into the bullish rally or wait till the trend settles?

Key technical points:

• The MACD indicator shows a bullish crossover.
• The ALGO price breached the 20-day EMA dynamic resistance.
• The 24-hour trading volume in the Algorand coin is $716.6 Million, indicating a 397% gain.

Source-Tradingview

On April 29th, the (Algorand)ALGO price breached the multi-month support of the $0.66 mark, suggesting the continuation of the downtrend. A follow-up bearish candle tumbled the altcoin by 16% and slumped it to $0.54.

However, the sellers couldn’t extend the downtrend any further and rebounded from the $0.54 support. Finally, the buyers push the coin above the $0.68 resistance indicating a support fallout.

If the ALGO price sustained above the $0.68 mark, the trapped sellers would eventually liquidate their holding and bring more buy orders into the market. The rising bullish momentum would drive the altcoin above the $0.8 mark.

On a contrary note, the fallout from the $0.66 would threaten the bullish thesis and plunge back to the $0.53 mark.

Technical indicators:

The Daily-RSI indicator chart showed a steeper rally indicating the rising underline bullishness. In addition, the RSI slope surged above the midline, giving additional confirmation for long buyers.

The ALGO buyers reclaiming the 20-day SMA indicates an early sign of recovery.  However, the 50-day SMA aligned with $0.8 resistance would interrupt a steady recovery.

The MACD indicator shows a bullish crossover but lacks a spread to promote recovery. However, a further increase in bullish spread and crossover above the zero line will indicate a buying spot.

• Resistance levels: $0.78 and $1
• Support levels: $0.66 and $0.54

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.