ALGO Price Analysis: Will Algorand Price Shine Brighter?

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With the US SEC nearing its decision to spot Bitcoin ETF, the leading cryptocurrency has shown its sustainability  $36000 mark. Thus, with the altcoin market returning to the bullish trajectory, the ALGO price rebounds from the $2.3 support with a Morningstar, teasing a strong comeback. 

Therefore, the rising prices continue to form a bullish reversal pattern called a rounding bottom. The analysis signals a trend reversal, indicating the ALGO price would be starting a new recovery phase, with the ALGO price prediction teasing an optimistic revival. 

Source- TradingView

Over the past month, the Algorand coin has shown a steep recovery at a price jump from $0.0877 to $0.148, registering a total growth of 69.2%. Amid this rally, the coin price breached a 100-day correction trend led by a descending channel pattern. 

The post-breakout rally and broader market recovery have pushed the Algo price to a four-month high of $0.1452. Further, this ongoing recovery is developing into a rounding bottom pattern in the daily timeframe chart. 

Moreover, this chart pattern reflects a clear transition from a prevailing downtrend to a sustainable recovery. Further, the ALGO price should prolong its recovery to $0.03, marking a potential gain of 108%. 

Thus, a bullish breakout from the $0.3 barrier would signal a new uptrend better.

Technical indicators:

RSI indicator: The daily RSI line continues to move in a sideways trend close to the overbought boundary. 

EMA: The rising 50-day EMA showcases a high likelihood of a golden crossover with the 200-day EMA.  

Will ALGO Price Jump Sustain Above The 200-day EMA?

Amid the ongoing recovery rally, the Algorand coin price has shown three correction phases with the objective of recuperating its bullish momentum. None of the three pullbacks closed below the 38.2 Fibonacci retestment level. 

Thus, if the anticipated rally of a bullish pattern witnesses occasional pullback, the coin holders can mark the 38.2% retracement level or 58% retracement level as their safeguard/ stop-loss.