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Algorand: These support levels are a good place to look for buying opportunities

2min Read
Algorand broke out past the month's highs and tested a zone of supply

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Algorand has posted gains of nearly 20% in the past five days. The charts showed that there was some resistance to be found at $0.93, $1, and $1.1 according to an analysis of higher timeframes.

On the hourly chart, the price could be slightly overextended, and therefore waiting for a pullback before buying ALGO could be the way to go over the next few hours. Bitcoin has also broken above the $42k mark and is likely to have had an impact on market sentiment.

ALGO- 1H

Algorand broke out past the month's highs and tested a zone of supply

Source: ALGO/USDT on TradingView

The $0.895 represents the previous highs that were registered in the month of March. This monthly high was broken in the past few hours, and the price faced a temporary rejection at a longer-term zone of supply in the $0.92-$0.93 area.

On longer timeframes, the move past the $0.895 is, by itself, a strong sign of bullish intent. Now, all that would need to follow on higher timeframes if ALGO registers a higher low before pushing for a higher high once more.

Where could this higher low and higher high be? To the north, $0.93 and $1 represent critical resistance levels. To the south, $0.895 and $0.873 are important support levels in the next couple of days.

Rationale

Algorand broke out past the month's highs and tested a zone of supply

Source: ALGO/USDT on TradingView

In the past week, the Awesome Oscillator made lower highs even as the price pushed higher from $0.81 to $0.85. This bearish divergence was followed by a retest of support and an impulse move to the upside.

In the next few days, market participants need to be wary of a similar scenario of a bearish divergence and retest of support. Such a series of events could be used to scout out opportunities to enter long positions.

The CMF continued to remain above +0.05 and the CVD has been green in the past few days. This showed demand has been good of late.

Conclusion

A pullback was not impossible, and the aforementioned support levels are a good place to look for buying opportunities. Until $0.81 is broken, a bullish outlook for Algorand in the near term held some validity.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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