Cryptocurrencies

ALGO technical analysis

ALGO seen from the temporality of 1W we can see how the current candle has managed to push strongly testing the area of supply located at 0.00004079 indicated in the chart above by the horizontal red color, if the current candle ends up being bullish we would have our second HL above the support indicated by the diagonal dark blue, this would increase the odds of a next bullish impulse, the 1D demand zone is located within the price range of 0.00003254 – 0.00003415, indicated in the graph above by the two lower horizontal black color, if the price in its retreat manages to hold that point, we could see a next movement in search of the breakage of the supply zone mentioned above.

ALGO seen from the temporality of 1D we can observe more closely the current movement of candles where we see that the strong momentum was achieved by the closing of the previous candle, however, has not achieved the closing above the area of supply, therefore, we could see some retreat into the area of demand forming a triple floor on the diagonal as a strong bullish signal for the bulls, this would move the price to 0.00004079 in search of the break, within the chart above I have drawn the possible trajectory that the price could follow during the movement within the figure of the upward triangle.

In conclusion, ALGO shows signs of a possible continuation of the upward movement, the best time to have entered this momentum was in the support located at 0.00002117, however, the price has already formed two HL and we have a correct test of the area of supply, therefore, the probabilities of a close break are very high, it is advisable to wait for our entry between 0.00003254 – 0.00003415, however, any movement could occur in the next candles, we must be very attentive to the price action not to stay out of the next movement, the price should keep the diagonal, otherwise, the price could form a new LL, always remember to place their stop loss to avoid possible invalidations during the movement.

As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.

You can follow me on Twitter: https://twitter.com/armijogarcia

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