Algorand is Back Above the 50 Day Simple Moving Average

Algorand price fell below the 50 day simple moving average (SMA) for the first time since December 23, 2020 and qucly testes the major psychological level at $1.00.

Algorand price defined an ascending channel for 25 days, just above the 50-day SMA. On Monday, ALGO closed decisively below the lower trendline and the medium-term moving average which cause the selling last week.

The breakdown looks to be short-lived as we are approaching the channel once again. A daily close inside the channel will be the first signal that last week’s weakness was just a shake-out of impatient traders. The channel’s mid-line at $1.38 is a critical resistance going back to March 5, followed by the channel’s upper trendline at $1.54. If we fail to make it back to these levels a retest of $1.00 will be almost certain.

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