The Algorand price has largely ignored the recent euphoria and still struggling below $1.00. But will ALGO soon catch up to the rest of the market?
Algorand (ALGO) is treading water this morning at $0.9072, down $0.0050 (-0.50%).
In the last two days, many altcoins have burst higher, clearing major resistance levels. However, Algorand is not one of them.
The permissionless Proof-of-Stake (PoS) blockchain has recovered from July’s weakness and increased by over 30% since the 20th of last month. And whilst this is encouraging, it pales into insignificance compared to the rest of the market. Altcoins typically outperform Bitcoin on the way up and often drastically underperform on the way down. And although the former was true in the first two months of 2021, ALGO has underperformed BTC’s 50% three-week rally this time around.
Furthermore, yesterday the price was rejected at an important resistance level. And unless the Algorand price can muster the strength to punch through in the next day or two, it may soon erode the recent gains.
ALGO Technical Analysis
Looking at the daily chart, we see ALGO remains trapped in a descending triangle formation. The top end of the pattern from the June high is currently capping the price at $0.9710. Adjacent to the trend line is the 100-day moving average at $0.9699. This is, therefore, a significant challenge for the bulls. However, if ALGO clears this barrier, it should extend beyond $1.0000 to the 200 DMA at $1.0719.
That being said, the fact the price has been unable to force its way through resistance given the buoyancy of the broader market is troubling.
Just below the price, the 50 DMA at $0.8460 must hold for the bulls to have any chance of setting a new big figure. Should the 50 DMA crumble, the bears will target trend line support at $0.6700, around 25% below the current level.
Algorand Price Chart (Daily)
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