Algorand (ALGO) Provide Buy Opportunity before Rallying to $1.40
- The early Friday crypto sell-off has ALGO dropping over 9% before recovering.
- Oscillator reading and bullish reversal candle suggest bullishness in the upcoming sessions.
- However, plunging risks remain, though slight than the potential surges.
Algorand (ALGO) appears to complete its last massive crash, targeting upside movements towards the resistance zone of around $1.40.
ALGO Contemplates a More Than 30% Surge from Friday Lows
Algorand defined a whipsaw event with its price actions during yesterday’s trading session. The alternative token recorded its intraday loss in approximately 1.5 hours, plummeting to $1.05 from $1.13. However, ALGO spent the following two hours climbing high towards $1.17. That way, Algorand printed a spinning top a reversal candle setup.
The spinning top candle formation comprises a long wick beneath the body and a short one beyond. Spinning tops appear open for broad interpretation, and some individuals incorrectly or correctly classify them as dojis. Nevertheless, ALGO’s candle interpretation indicates selling momentum faded, and potential recovery is likely.
The Optex Bands highlight extreme oversold conditions, contributing to the possible bullish reversal by the altcoin. Remember, the bands sat within a massive oversold area in most January sessions. However, the Composite Index confirms bullishness for ALGO price as it hits historical lows and supports zones. Lastly, the RSI stays inches beneath the initial oversold region within a bearish market (30).
Meanwhile, the upward move remains capped at Kijun-Sen, 38.2% FIB retracement, and Volume Point Control around the $1.40 mark. Market players should expect selling momentum to emerge in the area. Though downside risks remain, they are somewhat limited as ALGO visited its extreme. Any close under 61.8% FIB retracement near $1.02 will open the path to a capitulation action towards the value region of $0.80.
Meanwhile, Algorand will depend on crypto market sentiment for directional trends. While publishing this content, the global crypto space highlights bearish actions. While writing these lines, the global crypto market value stands at $1.64, 10.11% loss within the past day. Meanwhile, Bitcoin contemplates further drops, hovering at $35,775. Maintaining such conditions might hinder upticks in altcoins, including ALGO.
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