The price of the ALGO token of the Algorand project in November 2021 captured its historical maximum at the level of $2990 and since then there has been a decrease, moving under a small resistance line. The price hit a low of $0.16 and has since started the current uptrend.
What does the weekly chart say?
According to the results of the technical analysis, the Algorand price is trading near the important area of convergence of resistance levels at $0.280. It is formed by a long-term downward resistance line and a $0.280 resistance area.
The trend can be considered bullish if the market breaks above this area.
The entire bullish price movement was preceded by bullish divergence signals on the weekly RSI (green line). Now the indicator can break through the 50 line, confirming the bullish trend.
In case of a bullish breakout, ALGO could target the next resistance at $0.410. However, if there is a bounce, the price could pull back to the $0.170 support area.
Source: TradingView ALGO cannot sustain bullish momentum
Unlike the somewhat blurry signals of the weekly chart, the daily time frame promises the price a decline before it can start rising again.. Two factors speak in favor of this scenario.
First, ALGO took a bearish breakout of the rising support line and then tested it for strength as resistance (red icon). Secondly, this decline was preceded by bearish divergence signals on the RSI (green line), and the trend line of this indicator is still intact.
Accordingly, the most likely scenario promises the token a decline in the direction of Fibo support levels of 0.5-0.618.
On the other hand, a recovery above this line will cancel the bearish outlook on Algorand. In this case, the market may begin to rise in the direction of the long-term resistance we identified earlier at $0.410.
Source: Trading View
Thus, the most likely scenario for the token for this month is a decline towards the 0.5-0.618 Fibo support levels by $0.215-$0.231. Meanwhile, a recovery above the short-term upside support line would mean ALGO could rise to $0.410.
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