Outside of Hive/LEO/CUB my next largest holding is Algorand (ALGO) I like coins that have APR so this was a natural choice. I also think the tech is pretty good with fast cheap transaction. Right now ALGO is locked in an ascending channel.
The 50-day SMA support is just below the channel, adding an extra layer of support.
ALGO now needs a new catalyst to resume the uptrend.
I rode ALGO to the peaked on February 12 and held even with the Relative Strength Index (RSI) hitting 90.92. This is the highest reading ever recorded since the introduction of ALGO in 2019. I got burned trading this on the way up so I held through the 55% decline that followed...
Bullish Prediction
Now, ALGO is hovering within a narrow trading range that will determine where it is heading next. We are no longer overbought, price strength is being supported by a volume increase but the price strength has not pushed ALGO outside the channel formation. The real upward action starts when ALGO can close above the upside trendline of the channel on a daily basis, the outlook stays neutral/bullish.
Moving past this barrier we could see the price to the next major resistance level around the recent all-time high of $1.86, followed by the 2.618 Fibonacci extension level. Upside resistance are at the 1.382 and 1.618 extension levels of the February decline.
Risks
A daily close below the downside trendline of the channel and the 50-day SMA opens the door for a decline to the August 2019 high at $0.85. If market conditions decline we could see a move to the $0.77 price level.
