Amid the recent sell-off in the crypto market, the ALGO price witnessed a temporary pullback to the psychological level of $0.2. The lack of follow-up to the reversal candle reflects the market sentiment of buying the dips.
An immediate rebound from the aforementioned psychological level surged the AGIX price by over 20% in the last 48 hours. The renewed recovery preserved the bullish cup and handle pattern and a positive projection, as mentioned in our ALGO price prediction.
Source- TradingView
ALGO shows a classic rebound from the last correction trend in early February when the price bottomed at $0.155. The renewed recovery propelled altcoin 71.6% within five weeks to currently trade at $0.26.
The price chart shows this upswing as the completion of a traditional reversal pattern called the cup and handle pattern. On March 7th, the ALGO price breached the pattern’s neckline resistance, indicating a major shift in market dynamics.
Earlier this week, the optimistic trend for Algorand’s price was on the verge of being undermined by a recent market downturn. However, a rebound from the $0.2 psychological support offered a higher conviction from buyers and preserved the positive outlook.
Technical indicators:
RSI: The daily RSI line surged back above 70%, reflecting that buyers are leading an aggressive rally and are attracting momentum traders in the market.
EMAs: The fast-moving 20-and-50-day EMA provides a suitable pullback opportunity to buyers amid the current recovery trend.
Also Read: Ethereum-Based Altcoins Record Massive Price Pump! What’s Next?
Will ALGO Price Cross $0.50?
While the broader market trend is bullish, the ALGO is likely to march on the bullish pattern paved by a cup and handle pattern. With sustained buying, the buyers may drive the altcoin price to the $0.3 mark, followed by $0.50.
However, the antiquated rally won’t be unidirectional, as the Algorand coin shows a pattern of occasional pullback to stabilize the recovery trend.