ALGO carries another test target of $ 1.2 as the bulls lack patience
Algorand (ALGO) price rebounded from weekly lows of $ 1.32 last Saturday (Dec 4), despite its lack of tenacity in pursuing an uptrend.
ALGO is in a downtrend this week after hitting a weekly high of around $ 2 in December. Since then, this altcoin has lost about 15%.
Buyers are now trying to find a way to strengthen their position as ALGO rallied 2.64% on the day and is currently trading at $ 1.49.
ALGO is still leaning downward until it can surpass $ 2.
The ALGO cows prepare for their final dance. Although the 14-day Relative Strength Index (RSI) is still below the center line, upside momentum may be short-lived.
Meanwhile, the 50-day moving average (DMA) is on the verge of breaking above the 100-day moving average.
If a bearish crossover occurs that sends a negative signal to ALGO traders, a slide towards the 200-DMA at $ 1.36 is more likely. If he loses that level, the bears will try to remove the December 4 low of $ 1.21.
To the south, the psychological $ 1 comes into play.
ALGO / USD daily chart
Alternatively, the path to the rebound could face immediate hurdle at Friday’s $ 1.63 high, above which the 21-DMA will be $ 1.73 above.
Once it can get close to the $ 1.82 supply zone where the 50 and 100 DMAs converge, ALGO should be able to create momentum for a break above $ 2.