27 Aug 2020 #Algorand
After more than a successful month, during which the price had risen from $0.3 to $0.72, which constitutes the 150% growth in a matter of just 11 days, Algorand (ALGO) has already begun to retrace, cutting the gains from the past month to 75% against USD and 42.5% against Bitcoin.
3-month ALGO price chart
The reason behind such an impressive rally lies in the recently released upgrade of the Algorand network that is said to help the project to make the transition to decentralized finance through the incorporation of smart contacts at the base layer, along with such features as fast catchup and re-keying. The news regarding the upgrade was announced on August 19, but the price had risen significantly prior to that, incentivized by the expectations around ALGO becoming a part of the powerful DeFi movement.
The rule of thumb in trading says to buy the rumor and sell the news, which is true in the case of ALGO as its price has been making lower highs ever since the rejection at $0.75, accompanied by decreasing trading volume, and the buying volume in particular, which is nearly always the sign that the bullish momentum has been extinguished for the time being.
1-day ALGO/USDT chart
At the same time, the key technical indicators are also flashing bearish signals that suggest the possibility that the ongoing retracement could end up going below the current support level at $0.5, which the price has been testing quite well during the last six days.
Presently, it is important to see how the price behaves near these key support levels and have a stop-loss in place in case Algorand decides to take a nosedive.
To summarize, Algorand has already proven itself as a fairly strong gainer that could be further incentivized by the entrance into the DeFi space. The trading tactic here is quite simple: watch out either for the breakout of the bullish flag or the descent to $0.5 or $0.47, at which point, ALGO will provide clearer signs of its intentions.
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2021 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.