Algorand Price Analysis – 26th February 2021
On the four-hour cloud, metrics are bearish for the first time since late 2020. A longer-term bullish trend is unlikely unless price moves through the 4,000 sat to 5,000 sat range, which has historically held as a local top.
The Algorand (ALGO) market cap currently stands at US$804 million with US$340 million in trade volume over the past 24 hours. ALGO is ranked 76th on the Brave New Coin market cap table. The XTZ price is down 28% in the last 7 days.
About Algorand
The Algorand mainnet went live in June 2019. It was founded by computer science professor and Turing Award winner Silvio Micali, and Algorand is a decentralized network capable of supporting a range of applications. Algorand is a permissionless proof of stake protocol with a total supply of 10 billion tokens. Any Algorand holder may participate in protocol consensus voting.
Technical Analysis
Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.
Watch full ALGO Technical Analysis on YouTube
On the daily chart for ALGO/USD, the 50-day and 200-day Exponential Moving Average (EMA) bullishly crossed in January, leading price to multi-year highs. The Volume Profile of the Visible Range shows mild support below US$0.75 and strong support at US$0.33. Yearly pivots also show support at US$0.70. Additionally, there are no bullish or bearish divergences on volume or RSI at this time.
Turning to the Ichimoku Cloud, four metrics are used to determine if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.
Daily Cloud metrics, with doubled settings (20/60/120/30), for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above the Cloud and above the current spot price. The trend will remain bullish so long as the spot price remains below the Cloud, currently at US$0.50. On the four-hour Cloud, metrics are bearish for the first time since late 2020. A low timeframe long entry signal will trigger once prices move above the Cloud, currently at US$1.30.
The ALGO/BTC pair has mostly held a trendless, tight range since mid-2019. Price currently sits below the 200-day EMA and below VPVR resistance at 2,500 sats. Additionally, yearly pivot resistance sits at 3,000 sats. Over the next few weeks, a bullish 50-day EMA and 200-day EMA cross, coupled with moves above VPVR and yearly pivot resistance, will likely provide early bullish momentum signals. In the next few months, a longer term bullish trend is unlikely unless price moves through the 4,000 sat to 5,000 sat range, which has historically held as a local top.
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