Algorand(ALGO) Price Analysis 11 Sept 2022. Will it cross $0.5 in Sept?

Algorand(current price $0.325) has crossed above a critical resistance zone of $0.313 on daily charts and is expected to cross $0.37 if the market stays as usual for a week.

Strong Daily Charts

Daily charts consider positional trades that are held for a time period, such as a week.

On Algorand daily charts, there is a breakout above the 0.313 zone from where the cryptocurrency retraced twice, once on 19 July and another time on 13 August. That zone is decisively broken from the downside, indicating strong momentum.

Let us analyze it further to understand if this breakout is a true one or not.

For the current trade setup, I have used Daily Charts. The indicators that are used to analyze the cryptocurrency are RSI, MACD, and Volume.

The Target and Stoploss are calculated from Trend Line.

Algorand Price Analysis

Price analysis is done on daily charts and with RSI, MACD, and Volume as technical indicators. View the complete chart and trade setup on my Trading View.

Relative Strength Index

The RSI is 56, which is a good sign in a bear market because it shows that the cryptocurrency is showing early signs of recovery.

MACD

The MACD line is above the trend line, indicating positive momentum in price.

Volume

Volume is higher than in preceding trading days and indicates that the cryptocurrency is in the accumulation phase.

These indicators confirm our buying decision, and now we shall set targets and stop loss for the trade.

Target

The target can be set at a near-time high of $0.37. If the cryptocurrency reaches $0.37 and you still wish to continue the trade, then please reset your stop loss to the cost at which you purchased.

Stop Loss

The stop loss should be kept at $0.28, which has 3 near time bottoms, thus establishing a trendline.

Please note that it is critical that you learn to place stop loss which can be set using two ways. If you are a new trader set stop loss at 2-5% loss. Or at a point till which you can digest a loss. For experienced ones, place stop loss according to the support levels.

Will Algorand cross $0.5 in Sept?

It is highly likely that Algorand will cross $0.5 if it decisively crosses $0.37 and the indicators do not show an overbought situation i.e., RSI below 50 and MACD reversal(blue line underneath the orange line).

Support and Resistances

Support and Resistance levels are critical when investing or trading a financial instrument such as stocks and cryptocurrencies. Below are the support and resistance levels for Algorand based on the Daily Chart.

Please note that support and resistance levels are not fixed and change their name continuously. If a support level is broken from the top (i.e., the price falls below this level), then this level becomes a resistance or hurdle for that cryptocurrency.

What is ALGORAND?

Algorand is a Proof of Stake Blockchain with a fast network and inbuilt layer two solutions that help it scale without any external scaling solution. It was developed by Silvio Micali, an MIT professor and a Turing Award winner.

The unique thing about the Algorand blockchains is its architecture which uses a dual blockchain layer. It is designed to be a blockchain similar to Ethereum but with faster transactions and greater decentralization.

Read our thorough guide on Algorand to know more about this exciting cryptocurrency.

Disclaimer

The above price analysis purely aims to educate people on Technical Analysis and the importance of Technical Indicators in trading. It should not be taken as an investment advisory.