The ALGO price trend shows a long-term downtrend in motion, leading to a falling wedge pattern in the daily chart. The bearish pattern brings the Algorand price down to $0.0885, accounting for a price fall of 35% in a month.
However, the recent reversal teases a bullish exit from the bearish highway to reclaim the 50-day EMA.
Making a morning star pattern to ignite an early bullish reversal in the recent bear cycle, the ALGO price action completes an inverted head and shoulder pattern. This bullish pattern forms within the falling wedge, increasing the possibility of an upside breakout.
Currently, the ALGO price trades at $0.1081, with an 8% jump in the last three days to challenge the overhead trendline. Moreover, the bullish pattern forms a neckline resistance zone at the $0.1085 mark.
Reclaiming the 50-day EMA and the crucial psychological mark of $0.10 adds additional points to the breakout possibility. Trading close to the resistance trendline, the ongoing price action will be decisive in the future Algorand price prediction.
Technical indicators:
RSI indicator: The RSI line continues on the bullish trajectory and sustains above the halfway line with the recent reversal. Approaching the overbought zone, the indicator displays a bullish viewpoint on ALGO price.
MACD indicator: With the bullish histograms regaining momentum, the MACD and signal lines avoid a bearish crossover.
Will ALGO Price Sustain Above $0.10?
Considering the uptrend manages to breach the overhead supply flow, the ALGO coin price will set a new bullish trend in motion. Moreover, the breakout will signal an impressive entry opportunity for sideline traders.
The inverted head and shoulder and falling wedge breakout can coincide, igniting a stronger bullish move. The unleashed momentum might propel the Algorand price higher to the $0.1175 or $0.1380 mark.
On the other hand, if the ALGO price fails to give a bullish breakout, it will prolong the downtrend. Traders can expect the Algorand price to find a new low of $0.081.
